(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Children's Library | Biodiversity Heritage Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

Full text of "American commerce, its expansion"

Google 



This is a digital copy of a book that was preserved for generations on library shelves before it was carefully scanned by Google as part of a project 

to make the world's books discoverable online. 

It has survived long enough for the copyright to expire and the book to enter the public domain. A public domain book is one that was never subject 

to copyright or whose legal copyright term has expired. Whether a book is in the public domain may vary country to country. Public domain books 

are our gateways to the past, representing a wealth of history, culture and knowledge that's often difficult to discover. 

Marks, notations and other maiginalia present in the original volume will appear in this file - a reminder of this book's long journey from the 

publisher to a library and finally to you. 

Usage guidelines 

Google is proud to partner with libraries to digitize public domain materials and make them widely accessible. Public domain books belong to the 
public and we are merely their custodians. Nevertheless, this work is expensive, so in order to keep providing tliis resource, we liave taken steps to 
prevent abuse by commercial parties, including placing technical restrictions on automated querying. 
We also ask that you: 

+ Make non-commercial use of the files We designed Google Book Search for use by individuals, and we request that you use these files for 
personal, non-commercial purposes. 

+ Refrain fivm automated querying Do not send automated queries of any sort to Google's system: If you are conducting research on machine 
translation, optical character recognition or other areas where access to a large amount of text is helpful, please contact us. We encourage the 
use of public domain materials for these purposes and may be able to help. 

+ Maintain attributionTht GoogXt "watermark" you see on each file is essential for in forming people about this project and helping them find 
additional materials through Google Book Search. Please do not remove it. 

+ Keep it legal Whatever your use, remember that you are responsible for ensuring that what you are doing is legal. Do not assume that just 
because we believe a book is in the public domain for users in the United States, that the work is also in the public domain for users in other 
countries. Whether a book is still in copyright varies from country to country, and we can't offer guidance on whether any specific use of 
any specific book is allowed. Please do not assume that a book's appearance in Google Book Search means it can be used in any manner 
anywhere in the world. Copyright infringement liabili^ can be quite severe. 

About Google Book Search 

Google's mission is to organize the world's information and to make it universally accessible and useful. Google Book Search helps readers 
discover the world's books while helping authors and publishers reach new audiences. You can search through the full text of this book on the web 

at |http: //books .google .com/I 



^ 



^ 



AMERICAN COMMERCE, 
ITS EXPANSION.-.. 

A collection of Addresses and Pamphlets 

relating to the Extension of Foreign 

Markets for American 

Manufactures. 



-i 



l!^^ BY 



D.^. TOMPKINS, 

tuttior 01 "oeiiofl mi Processes ono GQicuioiions" ond 
"Goiion Mill, GODiniercioi Feoiures." 



CHARLOTTE, N. C: 

Published by The Author. 
1900 



CopyriRht, 1899 

by 

D. A. TOMPKINS. 






OHARLOTTK, N. C. 

obMrrer Prlotiag and Pnbliahtng Uouae. 

ItOO. 



preface* 

An outlet for our expanding manufactures 
seems now to be the greatest need of our 
country. 

With a normal increase in manufacturing, 
just keeping pace with increase of popula- 
tion, there is no need to look abroad for 
markets. But the large scale on which our 
American manufactures have been increas- 
ing, renders it imperative to discover and 
cultivate foreign markets. Failure to recog- 
nize this fact led to the recent great depres- 
sion in all manufactures and commerce. 
Opening up our relations with the far East, 
and the widening of our commercial inter- 
course with those people are the most po- 
tent factors in our present prosperity. 

I have brought together here, for conven- 
ience in distribution, a series of pamphlets 
and addresses which I have made from time 
to time in the interest of our general pros- 
perity. I hope by this means to be of some 
help in establishing principles which shall 



keep alive our interest in finding and devel- 
oping foreign markets, thus enabling our 
manufactures to continue their present 
growth; and by this influence also to provide 
greater markets and greater encouragement 
at home and abroad for our agricultural in- 
terests. 

D. A. TOMPKINS, 
Charlotte, N. C. 
December 15, 1899. 



CHAPTER I. 

mational £xpan9ion. 

The history of nations is largely a record 
of "the survival of the fittest." Modern na- 
tions exist by reason of the death of the na- 
tions of the past. It is useless to argue the 
justice of the destruction of any nation of 
former times. That nations have fallen 
when no longer fit to rule, is a fact, and it 
may safely be predicted that the future will 
be a verification of the wisdom of destroy- 
ing outworn and effete forms of govern- 
ment, that the progress of the world might 
not be retarded. 

In a business man's every day life he sees 
this law of the survival of the fittest at work, 
thinning out the ranks of his competitors 
and introducing new material. And it 
would be the silliest kind of sentimentalism 
for the successful man of affairs to sit down 
and lament his past success and cease his ef^ 
forts to widen his avenues of trade, because 



6 

he may have been the indirect means of 
pushing to the wall some other business 
man, forcing him to assign or to go into 
bankruptcy, leaving his wife and children 
dependent on charity. Competition, the 
very essence of business life, puts down 
some and elevates others. The fittest sur- 
vive. It must be so, else there is no life, no 
progress. Whatever the socialist and other 
sentimentalists like him may think, the sur- 
vival of the fittest is, has been, and will al- 
ways be, the law of progress in national af- 
fairs, in business, and in all walks of life. 

When the United States set up in business 
in 1789, they were small in numbers, popula- 
tion, and area, confined to the Atlantic 
slope. It is true they all claimed dominion 
to the great ocean on the west, but that 
claim was disputed, and successfully, too, for 
many years. 

The beginning of an expansion of terri- 
tory was inaugurated by the purchase of 
Louisiana by Jefferson in 1803. The reason 
given by those who favored the acquisition 



of the new territory was necessity. The 
young republic did not feel that it was strong 
enough to go to war with the nation that 
then held the port of New Orleans, so it pro- 
posed to acquire rights in the Mississippi 
valley by purchase. The territory of Louis- 
iana, with its Indians, Spaniards, Creoles, 
and French was acquired, Jefferson himself 
saying there was no constitutional warrant 
for thus expending the public money. He 
never said the republic had no right to ac- 
quire territory by conquest, nor did he ever 
quote the memorable declaration of 1776 
about the "consent of the governed," while 
consummating the bargain with Napoleon. 
It seems that such a weighty (?) objection to 
the trade in hand was then overlooked, and 
thus James Monroe, the United States Min- 
ister at Paris, and Napoleon closed the deal 
without consulting the Shawnees, the Sioux, 
the Spaniards, the Creoles, and the French, 
residents then in the land called Louisiana. 
Then, in a few years the Spaniards and 
Seminoles of Florida were sold out to the 



8 

United States. The Seminoles and Span- 
iards there were not consulted, nor was the 
consent of those to be governed obtained. 
The Anglo-Saxon desire for land and the 
necessities of the young republic subordinat- 
ed all other considerations, and Spain's col- 
onial possession, Florida, was made a ter- 
ritory of the United States. 

The State of Texas was acquired in 1844 
by annexation, which led to the Mexican 
war. When the affairs of that war were 
wound up, the United States took some land, 
some Indians,^ and some Spaniards, in pay- 
ment of the war debt and to punish Mexico 
for being indiscreet enough to go to war 
with us. It has been said that Mexico was 
unfit to govern Texas, that her power there 
was a menace to progress and that the Tex- 
ans won their independence some time be- 
fore 1844, in consequence of Mexico's 
tyranny and incapacity for enlightened gov- 
ernment. However, this country acquired 
Texas by the consent of the governed, it 
seems, but the territory comprising Arizona, 



9 

New Mexico, California, Utah, Nevada, and 

some additional strips was not acquired by 

the "consent of the governed." 

In 1867, when Gen. Grant purchased 
Alaska, it was done only by the consent of 

this country and Russia. The Esquimaux 
and the Indians, and the fur traders up there 
were not consulted, nor their future rights 
considered. The United States thought 
they needed the land and they paid for it, 
consulting the tenants in nothing. 

It may be remarked, in the first place, 
that the United States now have all the 
land above referred to; that some of it has 
been formed into States and admitted into 
the Union on equal terms with the thirteen 
original States. In the second place, in ac- 
quiring this territory no term was specified 
during which the new territory was to re- 
main without the privileges of statehood, 
nor was that question then considered. No 
conditions were imposed on this country by 
virtue of any acquisition, except those freely 
imposed by this nation upon itself. 



10 

The veriest tyro knows that we did not 
expand to the Pacific Ocean or the West, all 
by chance, or because the territory happened 
to be contiguous, or because we punctil- 
liously observed certain tenets of the Declar- 
ation of 1776, or certain injunctions that 
Washington left to Congress about entan- 
gling alliances. We have expanded because 
we deserved to expand, because we demon- 
strated our capacity to buy land, to conquer 
land, to annex land, and to govern people 
on that land. Without such capacity our 
past expansion would never have taken place 
and would have remained but an unrealized 
dream. 

It may be pertinent to remark here that 
the government of this country has never 
proceeded on the theory of a literal applica- 
tion of the principles of the Declaration of 
Independence to the government of its ter- 
ritories, and especially when the territories 
contained inferior peoples. Nor have the 
several States literally applied those doc- 
trines in carrying on their local governments. 



11 

At the very moment Jefferson was writing 
those memorable words about the consent 
of the governed, his several hundred slaves, 
governed by overseers on his Virginia plan- 
tation, had no government by the consent 
of the governed. The several States com- 
posing the Congress which published that 
Declaration to the world had numerous re- 
strictions on the suffrage, and did not gov- 
ern their inhabitants by consulting the 
wishes of all the governed. 

But, it may be said, the several States 
have gradually removed those restrictions, 
and the tendency is now to consult the 
wishes of all the governed. This is all very 
true, especially when the governed are 
thought to be worthy of exercising the 
rights of citizens on account of superiority 
of morals and capacity for civilization. In- 
stead, however, of this country consulting 
the wishes of all the governed, it has always 
shown the good sense not to do so. And 
in pursuing such a policy this country has 
gained the proud place she now holds as a 



12 

civilizing factor in the world's progress. If, 
as Mr. Gladstone once said, the English 
economy of government is founded on in- 
equalities, it only shows that such inequali- 
ties have inured to the benefit of all man- 
kind, as witness that wherever England goes, 
trade, commerce, Christianity, civilization, 
and good government follow. Certain 
social and moral conditions have rendered 
so-called inequalities in our governmental 
policy necessary; inequalities of mere birth, 
of course, are not here considered. 

The absolute impossibility of a practical, 
literal realization of the theory of Jefferson 
about the political equality of all men, then, 
is apparent. Those who invoke such a doc- 
trine now in arguing against the further ex- 
pansion of this country, betray an ignorance 
of our past history which is little less than 
absurd. The whole history of our dealings 
with inferior races, such as the Indian and 
Southern negro, ought to be gentle remind- 
ers of the fact that a good government in 
this country would have always been im- 



13 

possible, based on a literal interpretation of 
the Declaration of Independence, and would 
to-day be impossible in almost every South- 
ern State. It may be argued that our treat- 
ment of the Indian has been immoral and 
degrading, and that our present treatment of 
the Southern negro is equally so. But the 
treatment, which the Indians and the ne- 
groes have received at the hands of the su- 
perior races, has been the treatment all in- 
ferior races have received at the hands of 
superior races, the Declaration of Inde- 
pendence to the contrary notwithstanding. 
Joshua's treatment of the Canaanites was 
not half so humane as our treatment of the 
American Indian. Platitudes about equal- 
ity and natural rights do not alter race 
prejudices and laws of nature. It is a wise, 
a righteous provision of God's law which 
provides that the imperfect must die that 
progress be made, and that the whole race 
be not engulfed in ignorance and vice, su- 
perstition and Paganism. 

This leads to the observation that the 



14 

South once made the great mistake of try- 
ing to perpetuate African slavery in the face 
of the English prohibition and in the face 
of civilization. But the North made an 
equally great mistake when it gave the 
emancipated slave, ignorant and inferior to 
his white neighbors, the right to vote. The 
question of the negro's physical freedom is 
settled forever, but the vain attempt to apply 
the theory of the Declaration of Indepen- 
dence here in the South to the negro, giving 
him the power to vote without regard to 
his mental and moral qualifications is not yet 
wholly settled in favor of progress and good 
order. Judging from past experience, it 
is safe to say that the theoretical doctrines 
of political equality and the consent of the 
governed will play a very small part in the 
final adjustments of the race problem. 
Plain, practical, good sense and Anglo-Saxon 
superiority will govern in the end; and if the 
negro stands in the way of progress, he will 
have to get off the earth, just as the Mas- 
sachusetts Indians did before the face of 



15 

Capt. Miles Standish and his Puritan sol- 
diers. 

"Can We Expand," is a question that 
seems to be seriously asked by some, as if 
we had not always been doing it, and that, 
too, over countries inhabited by inferior 
races. The acquisition of the territory of 
Florida brought us no new social problems. 
The Seminole Indians are gone. The na- 
tives are gone. The acquisition of Louis- 
iana brought us no race problems that we 
have not solved, no suffrage problems that 
we have not successfully surmounted in the 
interest of progress and civilization and hu- 
manity. The same may be said of Texas 
and the other territory acquired by the war 
with Mexico. We have carried the school 
and civilization to Alaska, which is not con- 
tiguous territory. We have not lost our 
strength in doing so. 

And who will now rise up and say that 
the Filipinos and the Cubans and the Ha- 
waiian will present graver questions than the 
Louisiana purchase did in 1803? Then, we 



16 

were small, the sympathies of Europe were 
with our enemies. We had hardly demon- 
strated our reason for existence. How is it 
now? We have shown the world what we 
long ago realized, that we have capacity for 
both civilization and expansion. We have 
lately taken up a war in the interest of 
humanity. We have destroyed the sov- 
ereignty of an effete nation in Cuba, Porto 
Rico and the Philippines. Those islands are 
now certainly not Spain's, and why? Simply 
because she does not deserve to rule them. 
We have violated no code of international 
ethics in taking the foot of Spain off the 
necks of the Cubans and Filipinos. We 
would have deserved the censure of civiliza- 
tion, if we had not done as we did. There- 
fore, we have settled the first great problem 
in expansion in this particular instance; we 
have demonstrated that we have the moral 
character sufficient to protect the weak from 
the oppressions of the vicious and tyran- 
nical. In doing so, we have been true to 
our traditions and our history. We have 



17 

realized that we owed it to civilization to 
do as we have done, viz., destroy forever 
the sovereignty of Spain in her colonies. 
And when Spain's power was thus destroyed 
in her colonies, the one supreme question of 
expansion was settled forever. 

But the objection is now interposed 
against the consummation of the war, that 
the rights of the people of the Philippines 
should be considered, that the consent of 
the governed should be first obtained. But 
where in history do we find a superior peo- 
ple, a civilizing people, consulting the wishes 
of an inferior race as to a transfer of sov- 
ereignty? When Jefferson wrote "consent 
of the governed," he was talking to a great 
people, and his words were the utterances of 
an equally great people, so far as capacity 
for self-government was concerned. What 
would the map of Africa look like to-day, if 
England had asked the "consent of the gov- 
erned" before she went there? 

Unless, then, we intend to reverse our 
past policy of dealing with inferior races and 



18 



institutions, and enter on a policy of decrepi- 
tude and imbecility, we need fear nothing 
from extending our sovereignty over the 
Philippines. The man who doubts our abil- 
ity to restore order in the Philippines, and to 
rule them as well as we do Alaska and New 
Mexico and Hawaii, must certainly have lost 
iFaith in our institutions. He must deliber- 
ately give the lie to the whole history that is 
behind us. 

Those who argue against expansion say 
we have no right to govern and to tax peo- 
ple without representation, just as if we had 
not always been violating that glittering 
theory. In fact, it is not at all certain that 
any such sentimentality ever existed to any 
great extent in this country before, and it 

may be doubted whether it exists now to 
any alarming degree. Alaska is not repre- 
sented in Congress, nor is Hawaii. New 
Mexico and the other territories have only a 
nominal representation, yet their people are 
taxed. It is rather late now to . invoke a 
theory against lOo years of practice along 
another line. 



19 

And again, it is said that we have no con- 
stitutional right to annex the Philippines. 
If that be true, then there was no constitu- 
tional warrant for the acquisition of Alaska, 
Louisiana, Hawaii, or New Mexico. Such 
theories and refinements may amuse the an- 
tiquarian, but they certainly do not appeal 
to common sense. We have been govern- 
ing, taxing, and acquiring alien territory and 
peoples since the beginning of this century, 
and it is rather late now to enter such a plea. 

But, it is said, we should not acquire the 
territory of the Philippines, because those 
people are not capable of voting and taking 
part in our affairs. The people of Louisi- 
ana did not vote until long after they were 
added to our domain. The Alaskans, thirty 
years a part of this countrj^ do not yet vote. 
The people of New Mexico and Arizona, an- 
nexed to the United States in 1846, have 
never yet cast a ballot for president. Have 
we committed a crime against those people 
by thus hedging about their inalienable 
rights? Have we, by such a policy, de- 



20 

stroyed our self respect? Are Alaska and 
Arizona and New Mexico a menace to our 
future welfare? Are they not colonies of 
this country in as correct a sense as New 
Zealand is a colony of England? 

It is just this colonial policy, too, that the 
anti-expansionists pretend to dread. Some 
how or other these otherwise intelligent 
people have failed to realize that we have 
been in the colonial business for years; that 
we have a proconsul in New Mexico, one in 
Arizona, another in Alaska. And yet the 
"Roman colonial" system has not gotten in 
its deadly work, and there is no prospect 
that it will. 

The idea of annexing a "subject people" 
to this country seems to give the anti-ex- 
pansionists alarm, just as if they never heard 
of such a thing before. Are not the Alas- 
kans a "subject people"? Have we not seen 
the people acquired with the Louisiana pur- 
chase go through all the stages from the 
condition of a "subject people" to the high- 
est form of self-government known to our 



21 

institutions? These so-called anti-imperial- 
ists argue that "subject people" means a 
monarchial government and a colonial sys- 
tem, and that as they are against a mon- 
rarchy and in favor of a republic, therefore 
they are anti-imperialists and against what 
they call the colonial system, forgetting our 
past history and that a republic has to deal 
with the same problems of government with 
which a monarchy has to deal. 

We have seen ourselves go through the 
process of evolution from colonies to a Fed- 
,^ral Union, controlling large areas of land 
under a territorial system of government 
which is only another term for a colonial 
system, and yet we pretend that we are 
afraid of colonies ! We have had colonies in 
this country ever since we ceased to be colo- 
nies ourselves. For any one, then, to say 
that, all of a sudden, the expansionists are 
insisting on embarking on some before un- 
heard of scheme, insisting on adopting a 
r.ew colonial system for this country cer- 
tainly indicates a remarkable forgetfulness 
of our past history. 



22 

Has the expansion of this country to in- 
clude the Spaniards and Indians of Florida, 
made us forgetful of the grieat principle of 
local self-government ? Has the expansion 
of our republic to include the Creoles, the 
Indians, and the French of Louisiana, arid 
the Spaniards and the Indians and the half- 
breeds of New Mexico made us insensible of 
the rights of people to govern themselves? 
No, a thousands times, no! Our history 
gives the lie to such a proposition, while at 
the same time our expansion has taught us 
that the practical application of the theories 
of the Declaration of Independence can not 
yet be made to all classes and conditions of 
men. That lesson is worth something, be- 
cause it teaches us that we can govern the 
Philippines just as Thomas Jefferson gov- 
erned Louisiana, or as Polk governed the 
lands acquired from Mexico, and with just 
as little danger to our institutions, our con- 
titution, and the Declaration of Independ- 
ence. 

The anti-expansionists, not content with 



23 

resurrecting ghosts and playing the witch of 
Endor generally, add to their constitutional 
and sentimental objections still others, such 
as the great distance of Manila from the 
United States, the cost of maintaining a 
navy sufficient to protect the "colonies" and 
to carry on a government there. They add 
a horrible tale about climate, the tropics, 
foreign political complications, and the 
Monroe doctrine. 

Manila, in the days of steam and the tele- 
graph, is much nearer Washington than 
was California in 1848, when the governor of 
that territory sent out from the east, had to 
go to San Francisco by way of Cape Horn. 

The increase in our naval equipment has 
been going since 1885, and is likely to con- 
tinue, whether we annex the Philippines or 
not. But one thing is certain, we have need 
of more navy right there now than will likely 
be needed there again should the United 
States take permanent possession of the 
islands. And since we have the navy in fact 
and in prospect, with or without the Philip- 



24 

pfnes, it would seem that this objection 
counts for very little. 

The climatic objection is only one of last 
resort. We had Alaska in one extreme and 
Florida in the other before the late war with 
Spain, The climate of Alaska did not pre- 
vent the discovery of gold in the Klondike; 
the climate of Cuba will not prevent another 
George Waring from going there to aid in 
cleansing its cities, nor will climate prevent 
the benefits of good goverment being car- 
ried to the Philippines by the United States. 
It is the mission of humanity and science to 
counteract the ill effects of climate and to 
show men how to live under adverse condi- 
tions. Indeed, the time is coming when all 
tropical countries will be governed by the 
people of temperate zones. And finally, if 
it is a good thing to take our religion to the 
East, why is is not as correct a thing to take 
our government there, climate or no climate, 
just as we send our missionaries out regard- 
less of tropical suns and rains? 

Croakers about foreign complicationa. 



25 

have always been numerous. They seem 
lately to have taken an extra dose of ancient 
history which has resulted in disarranging 
their digestive organs for the time being. 
In the meantime, however, we are forced to 
hear about foreign complications and the 
violations of the Monroe doctrine in the 
annexation of the Philippines. The Mon- 
roe doctrine, it is safe to say, was pro- 
mulgated only for the purpose of protect- 
ing the South American republics which 
had lately thrown off the galling yoke of 
Spain. It certainly was not promulgated 
to keep the United States from expand- 
ing westward and southward, expelling the 
Mexican from California and the Spaniard 
from Cuba and Porto Rico. The nega- 
tive of the Monroe Doctrine may be cor- 
rectly taken as a declaration on our part 
not to interfere in the politics of Europe. 
We did not by announcing such a doctrine 
give bond and security never to go west- 
ward, for we were doing that at the time the 
doctrine was announced. 



36 

The increase of the standing army is an* 
other favorite objection to the expansion 
policy. But suppose we do increase our 
army to 100,000 men, will that make us a 
military power? Will we then have a larger 
standing army in proportion to population 
than the standing army of the country in 
the good old days of Jefferson and non-ex- 
pansion, so-called? It is not, therefore, 
probable that the increase of our army now 
contemplated will be likely to lay us open 
to the charge of militarism, whatever that 
may mean. 

When this government acquired Alaska 
and the Aleutian Islands, it extended its 
sovereignty through more degrees of long- 
itude from San Francisco than it will now 
extend its sovereignty westward from Aleu- 
tians by annexing the Philippines. 

This brief discussion of the subject has 
not covered the effects of expansion on our 
shipping interests and our foreign trade. It 
is only intended to offer some thoughts on 
the prevailing misconception of the underly- 



27 

ing principles of our past political history as 
emphasized by the present situation. 

That there will be objectors to the policy 
herein outlined, may be expected. They 
have been found at all stages of our national 
progress, but this country has gone on ful- 
filling its mission in spite of all their mis- 
givings and their prophecies of dire distress 
to come upon us as a government in case we 
went contrary to their ideas of national 
growth. However, it is believed that these 
thoughts v/ill serve to turn toward the sun- 
shine the faces of those who clearly study 
the histor) of our past expansion, and to 
increase their zeal for the Republic, as it 
enters upon the fifth stage of a policy as old 
as this century. 



CHAPTER II. 

Export t^ra^e. 

An address delivered October 5, 1899, at Montreal, 
Canada » by invitation of, and before The New 
England Cotton Manufacturers Association. 

The American Cotton Manufacturing in- 
terest is all practically confined to the At- 
lantic coast territory. This includes the Ca- 
nadian interests as well as those of the 
United States. On many other questions 
we have ben led to consider ourselves widely 
separated territorially. On account of those, 
we have fallen into much error of thought, 
as to our mutual relations. 

The spinners and weavers of America are 
really all neighbors; and it is gratifying that 
we are beginning to make visits to each 
other in a neighborly way. The trip of this 
Association to Charlotte and Atlanta did 
much to bring about better feeling and 
better undertsanding. In the trip to Phila- 
delphia the New England spinner and the 



29 

Southern spinner both lost some conceit 
and learned that the quakers and their 
friends knew better than either of us how to 
spin, to weave, and to be hospitable. 

In coming here to Montreal, we again 
learn — all of us, Philadelphians included — 
that "there are others." 

Observing the liberal hospitaUty of these 
Canadians, I am sure they will feel better 
satisfied with themselves for this conduct 
after we have gone, and I hope they will 
also think better of us. 

But reverting to the original thought, we 
are neighbors — neighbors who have common 
interests — and we ought to meet oftener in 
social and commercial intercourse for our 
pleasure and for our common commercial 
advantage. 

The old idea that it is a long way from 
Boston to Charlotte is slowly but surely 
dying away. Our ancestors of Revolution- 
ary times never had this idea, even in times 
when the trip had to be made by private 
conveyance, or by sailing vessels. It is an 



30 

idea that came of differences about slavery ; 
and, while the idea still remains in many 
minds, there are many who know that the 
fact is different. 

A very few years ago I was in Boston 
while some labor bill was under discussion in 
the Legislature. A committee from Fall 
River, that was in Boston to appear before 
the special legislative committee asked me 
to go with them to the State House to ver- 
ify some statements they had made about 
Southern mills. 

"I can't do that," I answered, "but if one 
or all of you will go home with me to Char- 
lotte, I will see that you will get ample op- 
portunity to see the mills there, twelve in 
number, and you can then return and speak 
for yourselves. 

"Oh, that would take too long," one of 
the committee said. 

How long, I asked. 

Two or three weeks," was the answer. 

There you are in error, and it is an error 
that T particularly want to correct," I said, 



(V 



31 

"you leave New York City at 4:30 p. m. 
Next morning you are in Charlotte for 
breakfast. You can see 12 cotton mills dur- 
ing the day of your arrival. You leave Char- 
lotte after tea at 8:30. Next day about 
noon you arrive in New York, and in the 
evening in Boston. Leaving Boston Wed- 
nesday forenoon, you can go to Charlotte, 
see 12 cotton mills Thursday, and have all 
day to do it; returning, you can get home 
Friday evening, and on Saturday testify be- 
fore the Committee here and of your own 
knowledge." 

"Ned, would you have believed that?** 
asked one of the Fall River men of another. 

"I don't believe it," said Ned, and I'll tell 
you why. Some 30 years ago I started 
South, say to Charlotte or any other point. 
I was backed by the entire resources of the 
United States Government. My party con- 
sisted first and last of something like two 
and a half million men. I crossed the Poto- 
mac fourteen times, the Rappahannock 184 
times. I walked 27,247 miles. I was four 



33 

years on the way. I got shot four times, and 
I never got there. I hope I will be excused 
for not believing that anybody can make 
that trip over night. It can't be true." 

It is true however, and in spite of nervous 
prejudices, we are neighbors, people of com- 
mon blood, and having common interests. 
We ought to be neighborly, meet oftener, 
and instead of controverting our local mar- 
kets, study together and promote our com- 
mon interests. 

What's the use of our squabbling over 
half a loaf, and calling each other names, 
when there is a whole loaf and to spare for 
each of us, if we will stop squabbling long 
enough to see it. 

I heard a little girl complaining a few 
days ago to her father that some one had 

called her a "kid". 

''Wf.1i what difference does it make, I ex- 
pect he liked you and wanted to call you a 
pet name," said the father. 

"If I was a boy it might be all right", 
said the little demoiselle, but I'm a girl, and 
I wont be called a kid by anybody." 



33 






Oh, fuss and feathers" said her father, 
everjbody calls children kids, and by that 
rule vou are a kid." 

"If I'm a kid," said the little lady, with 
asperity, "you must be an old Billy Goat."^ 

That concluded the argument, and so it 
is with the spinners and weavers of Amer- 
ica: Canadian, Puritan, Quaker or Cavalier, 
Fish, Flesh or Fowl, we are all of a kind. 
It behooves us to get together. 

I might tell you another story of common 
interests and common faults. An indus- 
trious and fairly worthy man went to a bar- 
becue down in my country. He got into a 
conrtoversy with his own son who knocked 
him down. Rising, the old gentleman said, 
"Sammy my son, I'm sorry to say it, but any 
man who would hit his father must come 
from mighty poor stock, mighty poor stock, 
Sammy." When the people of the North 
and the South say ugly things of each 
other, its more or less a case of the son's 
knocking the father down. We are all of 
the same flesh and blood, and what you 



u 

fellows in Massachusetts say about us in 
North Carolina, applies to you about as well. 
If we were not in Canada, out visiting as it 
were, I would say that I suspect the most of 
what you've said about us is tolerably near 
correct. 

But more seriously, we must get together, 
and in harmony look after American trade. 
When I say this, I include Canada. We 
want to work in harmony with American 
Canada, and with the Great Nation of the 
world, Anglo-Saxon England. 

Why controvert and fight for American 
trade only> when the trade of the world is 
open to us if we will only reach out for it. 

I was told a few days ago of a man who 
was travelling on a Mississippi steam boat. 
He was at a point where the banks of the 
river were a mile or more in either direc- 
tion and things looked like the river might 
be a mile deep. The man fell. overboard. 
He was floundering and was about to 
drown. "Stand up,'' "Stand up," "Stand 
up,"— the Pil6t kept shouting. Finally the 



I 



35 

man heard and standing up found that the 
water was only knee deep. 

In 1893, when we were all in trouble, if wc 
had had our wits about us and stood up we 
would have found the water to be knee deep 
only. 

In illustration of this, I give the following 
tables to show how exports helped us out 
of the panic of 1893. 

IRON EXPORTED FROM UNITED 

STATES. 

1894 $29,220,264 

1899 93715,951 

IRON IMPORTED INTO THE 
UNITED STATES. 

1891 $53,544,373 

1899 12,098,239 

Agricultural exports from 1892 to 1899 

were about $650,000,000. 

EXPORTS OF ALL MANUFAC- 
TURED PRODUCTS. 

1892 $158,000,000 

1896 228,000,000 

1898 290,000,000 

1899 338,000,000 



36 

Time brings every young thing to matur- 
ity. When the period of maturity is 
reached, youth must abandon the rules that 
obtained at an earUer period, and adopt 
those necessary to carry on the larger work 
that always presents itself to maturity. 

In the days of Washington or Hamilton 
the domestic trade of the United States was 
all the trade she had. She did not send 
abroad anything worth the while. Ham- 
ilton, wisely, therefore, inaugurated a sys- 
tem of protective tariff, which to some ex- 
tent, have been in force throughout all the 
years of the national life of the Republic. 

As long as our home trade was worth 
more than our export trade; as long as our 
manufactures did not wholly supply the 
home market, there could be no doubt as to 
the correctness of such a system of taxation, 
as a tariff for protection. And this doc- 
trine was advocated by such men as Clay, 
Adams, Webster, Calhoun, and a host of 
lesser statesmen, at various times. Those 
men were right. 



37 

But in the development of the nation, the 
United States has come to the period of its 
life when it must recognize changed con- 
ditions. The United States cannot stand 
Still; she cannot go backward. Under the 
protective system she has developed her 
manufacturing interests to such an extent 
that her domestic market now no longer ab- 
sorbs her manufactured products. The cot- 
ton factories of America now make enough 
goods in eight months to meet all local de- 
mand. The question with Americans now 
is what shall be done with the output of the 
mills for the other four months? 

Under adverse conditions the United 
States has lately developed a considerable 
export trade. In the ten years from 1887 
to 1897, the trade of the United States with 
China in cotton yams and cotton goods in- 
creased 121 per cent, in quantity and 59 J per 
cent, in value. The value of this trade in 
1887 was $5,331,251 and in 1897 $8,500,802. 
If we can continue to extend this trade, we 
may build more cotton mills in the United 



38 

States. If we lose this trade with Qiina 
jtiid the East, the United States already has 
too many mills. It seems to me, therefore, 
that the most vital question which concerns 
the cotton milling industry in the United 
States lies along the line of the country 
tnaking sure of its export trade. This is the 
kind of protection the States now need, and 
especially the Southern Sates, where there 
is at present the greatest activity in the cot- 
ton manufacturing industry. 

But I said that what export trade the 
United States has built up with the East has 
been built up under adverse conditions. 
We have no cable across the Pacific; we 
have failed to build as yet, the Nicaragua 
Canal; we have failed to foster by subsidies 
larger, better, or faster steamers for carrying 
the Pacific mails; we have failed to establish 
American banks in Yokohama, Shanghai, 
Hong Kong, and Manila, having connec- 
tions with the great American banks on this 
side of the Pacific; we have failed to put on 
exhibition at some central point, like Shan* 



39 

ghai, first-class exhibit of American goods; 
we have failed to ascertain thoroughly what 
classes of goods the East needs and prepare 
to make them ; we have failed to perfect our 
Consular service by putting it wholly under 
Civil Service regulations; we have failed, so 
far, to co-operate heartily with Great Britain 
in maintaining the "open door" in China, 
and in resisting the movement for the parti- 
tion there; and lastly, we have failed to real- 
ize the supreme importance of retaining the 
work of a civilizing world power, conscious 
of its large mission. 

It is not for the United States to deter- 
mine the question of expansion, or what the 
politicians call "imperialism." The onward 
march of civilization, which no one nation 
can retard, is solving that question. Th^ 
United States must make progress or go to 
the rear. The march of civilization deter- 
mined the fate of the American Indian. 
Sentiment may accuse that civilization in 
vain, for civilization will repeat that kind of 
woilc every time an opportunity offers. 



40 

Men tried to perpetuate human slavery 
in the face of that civilization, but they 
failed. The Filipinos must bow to the 
march of progress or vanish from the earth. 
If the United States is not the agent of 
civilization in the East, some other nation 
will be, after we make it plain that we in- 
tend to avoid the larger responsibilities of 
maturity. The United States, therefore, 
should retain Cuba, Porto Rico, and the 
Philippines. And there is no section of the 
Republic more interested in this policy than 
the Southern States. 

The commanding position which the 
United States has lately assumed, ought to 
emphasize the necessity of directing atten- 
tion to that larger protection which the ex- 
pansion of our export trade will secure. The 
United States now has the best domestic 
transportation facilities of any country in 
the world ; wealth or capability considered, 
she has the worst ocean transportation fa- 
cilities. We travel on our own railroads, 
and prosper at home. We travel in British 



41 

and German ships, and da not prosper 
abroad. The United States ought to sail 
the seas in its own ships under its own flag, 
and carry its own goods to China or the 
East in its own bottoms. There is hardly 
a town or city or county in the United 
States which has not voted money to build 
railroads, to promote local transportation 
facilities. And, while this has been done by 
hard headed business men everywhere in 
the States, these same men hold up their 
hands in horror at the suggestion of subsidy 
for a steamship line and herein the 
American policy has been less wise 
-or sensible than that of England. 
Only recently, the British Parliament, by a 
vote of 223 to loi, passed a resolution au- 
thorizing the issue of $4,300,000 of Gov- 
ernment guaranteed bonds, with which to 
enable the Jamaica Fruit and Produce As- 
sociation to establish a line of fruit and 
passenger steamers between Kingston and 
Great Britain. Besides thus guaranteeing 
the bonds of this company, Parliament re- 



42 

solved to grant the company a subsidy of 
$50,000 a year for five years. This is only 
one instance of how Great Britain has pro- 
moted all kinds of industries in her Do- 
minions. It is said, too, that as soon as 
this company becomes established it will 
extend its trade to the United States and 
to Canada. I favor therefore, subsidies to 
improve the shipping interests of the 
United States, as well as the reorganization 
of our Consular service on a commercial and 
not political basis. As our Consular sys- 
tem now obtains, we send men abroad for 
a year or two; about the time they leani 
the language and the trade conditions of 
the country to which they are sent, they are 
recalled, and others sent to do the same 
things, while the merchants and manufac- 
turers at home sell very little more goods 
abroad than before. 

And there is another question which vi- 
tally concerns the United States, as well as^ 
our British friends. I refer to the questioii 
of what shall be done with China. Jn the 



43 

so-called breaking up of that vast Empire, 
thie United States, and especially the South, 
has great concern. I quote from a recent 
speech of Mr. John Barrett, our Minister to 
Siam. 

He says: "The South has such a partic- 
ular interest in the development of our Asi- 
atic markets that there should be wide* 
spread interest in the Pacific opportunity, 
from the Roanoke to the Rio Grande. The 
developing demand, both for raw cotton 
and for manufactured cotton from the 
South, is one of the most interesting features 
of Oriental trade. The raw cotton which 
the South is sending to Japan, and which 
she may send to other ports in China, is 
dnly a slight measure of what may be sent 
in the future. The far East wants it, must 
have it ; and if the South has it to spare, she 
will ultimately find in the Orient a great 
outlet for her surplus product. At the same 
time, it is remarkable that among the most 
popular manufactured cotton products in 
China to-day are those which come from th^ 



44 

Southern mills. The demand for this line 
of goods is already large, but the best judges 
of Asiatic trade say that there is no reason 
why it should not reach into scores of mil- 
lions. 

"The particular markets for these South- 
ern mills is Manchuria, as I have elsewhere 
intimated, and, therefore, they have a special 
concern in seeing that Manchuria is never 
closed to them. Not more than one-thir* 
tieth of the population of Northern China 
has yet been reached in this market. If the 
entire field shall ever be covered, it will re- 
quire all the cotton mills in the South to 
supply the demand. If there is a market 
there which presents the astonishing condi- 
tion of demanding in large quantities both 
raw and manufactured cotton from the same 
section, without conflicting or competing 
with each other, certainly the South should 
do all in its power to hold and protect it. 
It is a conservative estimate to say that, the 
Southern States should within the next fif- 
teen years, do a business of $25,000,000 per 



46 

annum in cotton, if the markets of China 
are not closed against them. 

"The cotton manufacturers of the Souths 
have millions of invested capital practically 
dependent upon the market of Manchuria 
being kept open. At the present moment 
we have nothing but a treaty with a power 
that is breaking up to protect such vested 
interests. We have no understanding with 
Russia, and Manchuria is practically Rus- 
sian. I hope Russia will for ever maintain 
the open door, but we have no positive as- 
surance that she will." 

The question how to act and what to do 
in the East, then, are vital questions. By 
dividing up China into "spheres of in- 
fluence" the first step towards the dismem- 
berment of the Empire has already taken 
place. At present, or as long as these 
spheres of influence are permitted by the 
great powers of the earth, the United States 
is reduced, notwithstanding its treaty agree- 
ment vvilh China, to deal with China not as a 
tmit, but with fragments and under other 



46 

flags, in case we desire to get any permaneajt 
guarantees for the protection of our trader. 
This state of affairs must appear to every 
one as a very unsatisfactory way to deal mth 
China. It must also be equally clear that 
unless we soon take steps to maintain per- 
manently our trade in Manchuria or other 
Chinese States, we shall see the day when 
that trade will be annihilated. The time 
is rapidly coming, unless there is a change 
of policy, when Russia will be strong 
enough to show us the door out of Man- 
churia, instead of keeping the door open. 

These conditions indicate that we should 
adhere firmly to the policy of the open door. 
An equal opportunity will aid in reviving 
the imperial authority of China, by injecting 
stimulants if need be. To maintain this pol- 
icy. Great Britain, the United States, and 
Japan should work in harmony: for these 
nations are all interested in an open door, 
and the policy of equal opportunity. 

Unless these interests in China are se- 
cured by more definite arrangements on the 



47 

part erf our State Department at Washing- 
ton, it is difficult tQ see how our export 
trade has much guarantee for future expan- 
sion in the East, and especially in Man- 
churia, where the South is most vitally in- 
terested. Failure in this respect on the 
part of our State Department may not re- 
sult in disaster to the present administra- 
tion; but it is safe to say that posterity will 
never forgive it for inactivity in so import- 
ant a matter, and in the face of so many 
warnings. 

If then, we would be wise for the future, if 
we would make it impossible to overdo the 
cotton industry in the United States and in 
the South, we should take the most intelli- 
gent interest in adjusting the Eastern ques- 
tions so that our export markets will not 
suffer in the days to come. 



CHAPTER HI. 

Soutbern flDanufactures anb 1nter< 

National ^rabe. 



An address delivered October i8, 1899, at Philadel- 
phia, by invitation of, and before The Interna- 
tional Congress, called together by the President 
of The United SUtes. 

"I know of nothing, excepting the Chris- 
tian religion, that can be compared with the 
influence of a free social and commercial 
intercourse for softening asperities, remov- 
ing prejudices, extending knowledge and 
promoting human happiness." This senti- 
ment was expressed more than fifty years 
ago by Robert Y. Hayne, of South Carolina, 
in a speech advocating the construction of a 
trunk line of railway from Charleston to Cin- 
cinnati. It is a sentiment peculiarly appli- 
cable to this occasion, where the representa- 
tives of different nations have come together 
for the purpose of discussing measures of 
reciprocity and mutual advantage. The con- 



49 

ditions which surround the commerce of the 
different nations are constantly changing. 
Only a few years ago, the best measure of 
protection to the manufactures of the United 
States was a system of import duties which 
would preserve for home manufacturers the 
home markets. It has transpired that for 
to-day the best measure of protection lies 
rather in the creation and development of 
international or export trade. The Ameri- 
can people are to-day more than ordinarily 
interested in everything that relates to the 
development of international trade. In this 
condition, the meeting here of these repre- 
sentatives of countries with which we may 
establish further commercial relation, to mu- 
tual advantage, is peculiarly opportune 
and appropriate. It is more than important 
to us to propose only such measures, and to 
attempt to inaugurate only such trade as 
shall be for mutual advantage. That sort 
of trade in which one side gains greater ad- 
vantage, can never be permanent. 

The invitation to me to speak here speci- 



50 

fied that I should discuss the subject of in- 
ternational trade from the point of view of 
the interests of the Southern States. I 
cheerfully undertake this task, only re- 
gretting my inability to do the subject jus- 
tice. 

In all the United States, it is in the South 
that the greatest changes have come about. 
Less than forty years ago the South was, 
for all practical purposes, a region devoted 
exclusively to agriculture. The institution 
of slaverv existed, and the labor of the South 
was practically exclusively slave labor. In 
this condition, the South had scant inter- 
est in I he development of manufactures or 
in any sort of protection of trade in manu- 
factured products, either in the domestic or 
in foreign markets. 

This, in itself, was a condition different 
from what had formerly existed. In the 
early part of the century when slavery had 
not yet overshadowed all other interests, the 
manufacturing interest was well established 
in the South. By the United States census 



51 

of 1810, the manufactured products of Vir- 
ginia, the Carolinas and Georgia exceeded in 
value and variety, those of all the New Eng- 
land States combined. I mention this fact 
in order to exhibit that changes of the most 
radical sort are constantly taking place, and 
to make it clear that if we would always have 
the best advantage in commercial relations, 
we must constantly study the conditions, 
and undertake trade where the surroundings 
have proved to be most favorable. 

The changes that have taken place in our 
cotton growing region in one hundred years 
are as follows: 

First, an agricultural development. Sec- 
ond, a manufacturing development under a 
protection policy inaugurated by Washing- 
ton and Hamilton, and advocated in their 
time by Clay, Adams, Webster, Calhoun and 
others. Third, the growth of the institu- 
tion of slavery to proportions that over- 
shadowed the manufacturing interest, Cal- 
houn having changed his views and become 
the leader of the pro-slavery party. Under 



52 

this influence the manufacturing interests 
of the South well nigh dried up. Fourth; 
the civil war, the abolution of slavery and 
the re-establishment of manufactures. 

In returning to manufactures the success 
of the people in what may seem new occupa- 
tions has been no less astonishing at home 
than abroad. 

It is in the Southern States since the civil 
war that the production of pig iron has been 
brought to an export basis. 

It is there also that the bulk of our export 
lumber is being cut. 

It is there that the great industry in cot- 
ton oil and other cotton products has been 
established and put on an export basis. 

It is there that the bulk of American to- 
bacco is grown, and there also its manufac- 
ture has been increased to an export basis. 

It is there that American cotton is all 
produced, and is upon an export basis. It 
is there also that the manufacture of cotton 
goods has been developed in a very short 
period and that also upon an export basis. 



53 

. Forty years go, the foreign merchant 
would have found little in the South to at- 
tract Ms attention, excepting our raw cot- 
ton. To-day he may find vast products in 
iron, wood, cotton oil, cotton seed meal, cot- 
ton cloths, all in infinite variety and enor- 
mous quantity. It is a series of products, 
wonderfully well adapted to the require- 
ments of international trade. It is the re- 
sult of a growth so quickly made, that a 
statement of the favorable trade conditions 
can be but briefly made in this discussion. 

This growth is by no means ended. In- 
deed, it would scarcely seem to be more 
than well begun. 

; The South makes more than 10,000,000 
bales of cotton. Of this product it manu- 
factures far less than one-fourth. It is only 
a question of finding markets for cloth for 
the South to push her manufacture of cotton 
lto the limit of the raw material. This is 
going on to-day with great rapidity. New 
mills, chiefly for export goods, are going up 
113 the South to-day as rapidly as builders 



54 



can furnish machinery. Within a few years 
it has come to pass that in the city in which 
I live, Charlotte, N. C, raw cotton has be- 
come relatively higher in price, and cotton 
goods relatively cheaper in price than at 
any other place in the world. It is in this 
region, therfore, that the foreign merchant 
will find the best goods for his home mar- 
kets, at the cheapest prices. 

In confining this discussion to the 
changes that have talken place favorable to 
foreign trade, I do so advisedly, and to keep 
within the limits of the subject assigned to 
me, in the invitation kindly extended to me 
to speak here. 

I might speak at length upon the subject 
of as important changes which have taken 
place in the Northern part of this nation. In 
all parts of this country our manufactures 
have reached such a condition that the for- 
eign merchant will henceforth find aH 
American markets perhaps the most attrac- 
tive of any in the world. 

In this condition it behooves us and you 



55 



to co-operaate for the purpose of creating 
the necessary facilities for the most expedi- 
tious and economical exchange of our pro- 
ducts. I believe in the principle of recipro- 
city, and I hope that this meeting will for- 
ward this principle for our mutual advan- 
tage. For the promotion of our trade — 
yours and ours — I regard it important that 
a canal shall at an early day be constructed 
across the isthmus conencting North and 
South America. 

I regard it important that there should be 
better shipping facilities between this 
country and all others with which we are 
now doing business, or may do business in 
the future. It will be profitable to us and 
to the people of the countries to which 
our goods may go. We need better inter- 
national banking facilities. This is exceed- 
ingly important, and wherever reciprocal 
trade can be successfully done, both nations 
should extend liberal facilities for the estab- 
lishment of international banks. 

The great and essential fact which it is 



56 

important to fully appreciate is that it has 
come to pass that the manufacturers of the 
United States have reached a condition 
where they can supply goods in large quan- 
tities, of the very best qualities and at the 
lowest prices to all the markets of the world. 
A large export trade has been established 
with many countries, and is destined to grow 
to enormous proportions in the next quarter 
century. 

The facilities to extend this trade will 
undoubtedly be brought about. It is the 
spirit of the people of this country that a 
navy shall be built to protect this com- 
merce. 

In the past, our policy has always been 
one of expansion. Henceforward it will be, 
as in the past, still expansion. We earnest- 
ly wish to meet the expanding commerce of 
other countries on a basis of reciprocity, and 
to join hands with them in the development 
of our resources and of theirs. 



CHAPTER IV. 

Hmerican J'actoriee for Hmerican 

Cotton^ 



An address delivered October 21, 1899, at Dallas, Tex- 
as, by invitation of, and before The Industrial 
Convention, called together by the Governor of 
Texas. 

The business of spinning and weaving, 
considered as an art and occupation, is per- 
haps, excepting only agriculture, the oldest, 
the most varied and the most extensive in 
the worid. The spinning of fibre, and the 
weaving of textile fabrics is now, and always 
has been, practiced in all climes and in all 
countries. It is an art extensively followed 
by the most primitive and uneducated peo- 
ple of the world, and it is also made the 
subject of perhaps more study and training 
than any other. It is an art in which, tak- 
ing two generations, few families could be 
found in all the world in which there was 



58 



not some member who could spin and 
weave. Relatively speaking the present 
generation of Southern people have pro- 
duced and furnished more of the raw ma- 
terial for this art than any other people in 
the world; and yet, forsooth, the present 
generation of Southern people assume to 
know less about spinning and weaving, and 
do know less about it than any of the people 
to whom they furnish the raw material. 
There are probably few people in the audi- 
ence before me whose mothers or g^nd- 
mothers could not spin and weave cotton 
and also other fibres. And yet there is not 
another locality in the world where such an 
intelligent assembly could be collected, in 
which the people so persisted in assuming 
that there was something so mysterious and 
complicated in the textile art as to require 
smarter or more clever people to come from 
somewhere else to teach what their grand- 
mothers knew fairly well. In this art the 
simple and uneducated people of the far 
East do finer work than is commonly done 



59 

in the more progressive and civilized parts 
ci the world. 

Having exhibited this condition, it would 
be useless to dwell upon it. The proposition 
you have submitted to me is that I shall 
make some suggestions as to what would be 
necessary for the promotion of this art in 
Texas, and exhibit something of what the 
profit or advantage would be in its develop- 
ment. 

I will enumerate the factors that enter 
into the problem, and then discuss each fac- 
tor in order. These factors are: 

1. The necessary capital to build fac- 
tories. M 

2. Tne knowledge and skill necessary to 
operate them. 

3. Labor in quantity sufficient and at 
competing prices. 

4. Education. 

5. Markets for the products. 

In the matter of capital, it is desirable and 
necessary that you should rely upon your- 
selves to furnish it. The desirability comes 



60 

of the. fact that whatever interest you pro- 
mote, it would be your natural desire to be 
benefited by it. If the conditions are favor- 
able, and the growth of cotton manufacture 
is valuable, then why urge upon and wait 
for other people to come and own the indus- 
tries to your exclusion? Nobody is apt to 
come here and take all chances to found a 
new industry when all the supplementary 
advantages and none of the risks would be- 
long ta you. The advantages, to any sec- 
tion in ihe cotton growing region, of cotton 
manufacture may be exhibited as follows: 
Take a county producing 10,000 bales of 
cotton. This cotton at 6 cents ,a pound 
would yield $300,000. This same cotton 
manufactured into cloth would, at 18 cents 
a pound, yield $900,000. This would mean 
a clear profit of $600,000, being twice as 
much as the present gross value of the cot- 
ton, or 200 per cent, per annum. At this 
irate, a comparatively small capital could be 
quickly built to one of large proportions and 
great consequence* I have found that in 



61 

the towns and cities of the Southeast, where 
it was formerly thought there was little or 
no capital, it has become comparatively easy 
to raise the necessary money to build a cot- 
ton factory. As a general rule if the pay- 
ments are made at the rate of lo per cent, 
per month, this is as fast as the money can 
be used. In cases where this cannot be 
done, the payments may be reduced to 5 per 
cent, per month, and the mill built more 
slowly. Many mills have been built in the 
Southeast on even slower rates of paying 
subscriptions than the above, quite a num- 
ber having made their payments at the rate 
of 50 cents per week per share, and one or 
two even so slow as 25 cents per week per 
share, which stretches out the period for ac- 
cumulating capital to four and eight years, 
respectively. The latter is not recommend- 
ed. It is better, of course, to build a mill 
without delay and to have the capital paid 
in about as it is needed to so build. The 
question of capital is simply one of devising 
the means to create a savings fund or credit 



62 

out of current labor, agriculture and com- 
merce. The wealth of no community is rep- 
resented by actual money. The requirement 
as to money is that there shall be enough to 
pay in and out, and in and out, again and 
again to cover in the aggregate the value of 
the accumulated property. It is simply a 
question of how much capital may be avail- 
able, and of the time necessary to turn i^- 
enough times to make the value or cost of^ 
any desired property. The accumulation of 
money in this way grows easier each year 
because the accumulations of the previous 
year are helpful. 

In the main, the establishment of manu- 
factories in any section is done by home peo- 
ple. This is true of your cotton seed oil 
business in Texas. It is true of the cotton 
manufacturing industry in the Southeast. 
All the Northern or foreign capital comes 
after the demonstration by home people 
that an industry is profitable. The New 
Englander is as conservative with his capital 
as you are ; and, while he would be more than 



63 

disposed to join in, where the proof of good 
profit could be shown, he would not be dis- 
posed to make, as a rule, any experiments 
out here for your benefit. 

It has been found that the ordinary young 
man or young woman found in any part of 
the South can be trained to do the ordinary 
operations in a cotton mill in two or three 
weeks. This is exclusive of superintendents 
and bosses who, besides having the skill to do 
the ordinary operations, also understand the 
functions of the different parts of the ma- 
chines and their adjustments. The superin- 
tendents and bosses you could well afford to 
hire in the East and bring here. 

The rank and file of the labor should be 
home people, and it is in this feature that I 
would be most solicitious about the develop- 
ment of cotton mill interests in Texas. In 
some parts of Texas you probably already 
have sufficient reliable labor who desire 
work. In other parts the labor problem 
would probably be a doubtful one. It is of 
the greatest importance that I should speak 



64 

to you in full frankness and rather dwell 
upon the difficulties than upon the advan- 
tages. Everybody understands that Texas 
has cotton of the best quality, in great abun-^ 
dance and very cheap. I, therefore, merely 
refer to the question of cotton and dwell 
upon that of labor. The fertility of your 
soil and your prosperity in agriculture is 
against the very best conditions for cotton 
mill labor. The demand for labor on the 
railroads in handling your vast products, 
and at your elevators and cotton oil mills, 
makes conditions adverse to cotton mill 
labor. Every increase of your population 
decrease these difficulties. Time and con- 
stant effort alone, without regard to increase 
in population, would ultimately sift out 
suitable cotton mill labor; but a mill might 
have to break two or three times during the 
process of forming a successful organization. 
I believe the time has come when a mill can 
be started in most parts of Texas and made 
successful from the start. Too large a mill 
ought i-'ot .to be attempted. Make a small 



65 

start, say with $100,000, and increase as the 
organization of labor is perfected. Also 
make coarse goods, because in coarse goods, 
cotton Is the important factor, and labor is 
reduced to a minimum. I quote some fig- 
ures from my new book, "Cotton Mill, Com- 
mercial Features," as follows: 

A mill costing $175,000, making number 
8 yam, would use 254 bales of cotton in 
two weeks and employ 100 operatives. A 
mill of the same cost for number 40 yam 
Would require only 44 bales, with still 100 
operatives. The best mill for Texas is 
therefore one for coarse goods. Another 
reason for this is that the best goods for the 
Chinese market is coarse goods, and this 
market is west of you. For the operation 
of a cotton mill, labor is required that is not 
high priced, and that is regular and reliable. 
This does not mean labor that is cheap in 
the sense that it is not prosperous. The 
perfect regularity of the work makes the 
labor m a cotton mill more independent than 
any other, although it is not high priced. 



66 

This is shown by the enormous savings in 
Massachusett's banks in cotton mill towns, 
and by the fact that in a place like Pittsburg, 
where wages are higher, but work irregular, 
the people always go East to borrow money 
from the spinner or the spinner's savings 
bank. 

The condition of labor for spinning and 
weaving in Texas will always improve as 
population increases and the spirit of rest- 
lessness decreases. In North Carolina We 
employ 30,000 operatives in the mills and 
spin 300,000 bales of cotton. At this ratio 
each operative spins ten bales of cotton a 
year and weaves much of the yam into or- 
dinary sheetings and plaids. In the same 
ratio it would require only 1,000,000 opera- 
tives to turn the whole cotton crop of the 
South into plain sheetings. On this same 
basis the necessary labor may be figured for 
any ordinary community to spin all of its 
cotton. In a number of counties in the 
Carolinas the mills in the counties spin more 
cotton than is made in these counties. Your 



67 

Texas crop at 3,000,000 bales would require 
to spin and weave it 300,000 operatives. 

While you can purchase the necessary 
knowledge and skill to successfully handle 
mills making plain sheetings or cheap plaids 

you should always have in view the better 
and more profitable development of your 
manufacturing interests. To stay in the 
competition, it is necessary that you do this, 
and in order to do it you must educate your 
youth. Spinning and weaving is an art 
well worth the attention of your sons and 
daughters. There is no limit to which it 
can be extended, even into the fine arts* 
In Europe, the most progressive countries 
are vieing with each other in the construc- 
tion of textile schools, where their youth is 
taught how our cotton may be bought at 6 
cents a pound, taken there and then sent 
back here and sold to the very producers of 

it at prices ranging from 50 cents to $5 a 
pound. Not long ago I weighed up some 
thin, printed cotton goods in a North Caro- 
lina town and found that it was being sold 
at the rate of $1.60 a pound, including 



68 



starch. In all our schools, we should in- 
corporate study and practice in what relates 
to our own raw materials. I would not advo- 
cate eliminating any education at present 
provided for, but I would by all means intro- 
duce in the schools of any cotton growing 
State, departments and courses in textile 
science and art. In this country there is a 
very fine textile school in Philadelphia, 
which has been in operation for some years. 
Latterly, textile schools have been estab- 
lished in North Carolina, in South Carolina, 
in Georgia and in Massachusetts, the latter 
State having established two. In Europe, 
millions of dbllars have been spent in build- 
ing and equipping textile schools, and the 
result is shown in our importation of so 
much cotton cloth, made of raw material we 
ship from here. 

The education necessary for modem man- 
ufacturing must be technical and practical. 
The youth must be both taught and trained. 

There was a time when it was fashionable to 
be a self-made man. It was the fashion td 



69 

have started life on the tow path, and never 
to have been to school. Then in time there 
came technical graduates. Industrial pro- 
cesses became more technical and complex 

than uneducated inechanics could handle. 

t 

The first technical graduates were imprac- 
tical. Then came the day of the man who 
had both education and manual training. 
It is these who are now in control of all in- 
dustrial matters, and who are essential to the 
present condition of manufactures in the 
United States. Every successful man of this 
jlay is a self-made man, but not in the old 
sense. The man "whose school was the tow 
path," is no longer a factor. We hear no 
more of him. The successful manufacturer 
must be well educated and well trained. He 
must have both knowledge and skill. The 
ante-bellum planter's son was wonderfully 
well educated for the occupation he was to 
follow. While yet a youth, he served an ap- 
prenticeship in plantation work. On the 
plantation, while yet a boy, he served an ap- 
prenticeship by force of contact, in handling 



70 



mules, negroes, horses and every process of 
raising and putting up cotton. This prac- 
tical contact, together with a college educa- 
tion, made a man who was well educated fer 
his life work. When the modem youth 
learns the loom and spindle as well, and 
joins this practical knowledge with a good 
general education we will prosper beyond 
calculation. 

We could not raise the quantity of cottoh 
we now raise, except for our foreign mar- 
kets. Germany, England and other pro- 
gressive nations are perfectly willing to send 
subsidized ships here after our raw cotton. 
They are not disposed, however, to facilitate 
the export of our manufactured goods. That 
would interfere with the very purpose for 
which they want the cotton. Progressive 
European nations are willing enough to in- 
sure good government and promote trade in 
the undeveloped parts of the world for the 
extension of their own trade; but if we 
would have markets for ourselves, or partici- 
pate in those created by other nations, we 



71 

'must share our part of the burdens. I am 
far from advocating that ours should be- 
come a conquering nation ; but when the re- 
sponsibilities of civilization fall to our lot, I 
believe that we should conscientiously ac- 
cept the burden now and in the future as in 

'the past — now with the Philippines as we 
did in the past with Texas. It might be 

• charged, that the motive is to acquire trade. 
I speak now in a section, which in the re- 
cent past was situated just as the Philip- 
pines now are. And I speak on the subject 
of developing their manufactures and find- 
ing trade for their products. 

In the past, our domestic market has 
taken the whole product of our factories. 
Now, our factories running eight months 
will supply our domestic markets. It be- 
comes evident, therefore, that if we further 
extend our manufacturing interests, we 
must find export markets, and pay the cost 
of the facilities to work them. Amongst 
these necessary facilities, I might mention 
the following: 



72 

1. Build an Isthmian canal, connecting 
the Gulf with the Pacific Ocean. 

2. Lay a cable from San Francisco to 
Hawaii, Tokio, Shanghai, Hong Kong and 
Manila. 

3. Create lines of American ships, by the 
best means available, to those countries with 
which we have a fair prospect of trade. 

4. Improve our consular service, to 
make it of value to our commerce. 

5. Promote and protect American bank- 
ing interests at home and in favorable for- 
eign markets. 

In this list, perhaps, the building up of 
our shipping is most important. When our 
domestic market was ample for us, perhaps 
this was the least important. In our rail- 
roads we have the best system of domestic 
transportation in the world. We have paid 
for them with subsidies. Yet we have a 
peculiar prejudice against subsidizing a ship 
line. There is hardly a town, county, city 
or State in the United States which has not 
voted bonds, and g^ven them away in e^c- 



73 

change for worthless railroad stock. Every- 
body voting for bonds has known that the 
money was being practically given away. 
In so far as the investment was concerned 
it was willingly lost for an assurance of bet- 
ter transportation facilities. In coming yes- 
terday morning through Little Rock, I 
bought the morning paper, in which I read 
an editorial headed, "Raise the Bonus," I 
will read the beginning of the article, as fol- 
lows: "Over $57,000 has been subscribed to 
the 'Arkansas Northern' bonus, the sub- 
scriptions being obtained without any un- 
necessary flourish of trumpets. Among the 
list are the names of several enterprising 
firms that have not been in business in Little 
Rock many years, but whose donations 
range all the way from $100 to $1,000." 

I know of no case where the money so 
lost could be returned to the losers upon the 
condition that the railroad should be torn 
up. In the State in which I live. North 
Carolina, we have entered upon an extensive 
scheme of building public highways and 



74 

maintaining them by taxation. We have 
come to a realizing sense that transporta- 
tion facilities cost money, are worth money, 
and that money paid for them is a profitable 
investment to make. It reqmred a long 
time, and much argument to convince peo- 
ple that a tax laid to improve the public 
highways was advantageous; but now no- 
body objects to the tax, and politicians vie 
with each other in advocating the new system 
of highway construction. For the expan- 
sion of our foreign trade, we need transpor- 
tation facilities on the oceans, somewhat 
commensurate with those on land. If we 
ever get them we must pay for them. If it 
is necessary to pay subsidies to get steam- 
ships, then I favor subsidies. What con- 
sistency is there in voting bonds to help a 
new railroad and in refusing to subsidize a 
new steamship line? 

What I have said about ships, as an essen- 
tial part of ocean transportation facilities, 
applies with equal force to the construction 
of an inter-ocean canal, connecting the 



'(jtilf of Mexico with the Pacific. With this 
canal, and with ships going through it to 
and from the Orient, the advantage here to 
your State would be coUosal. Your cotton 
'would go in still larger quantities to custom- 
ers in the far East, who are already taking it 
in no inconsiderable quantity. Besides cot- 
ton, you could send them wheat, flour, per- 
haps rice, sugar and many other products of 
'your State. The national government should 
undertake the execution of the beneficent 
work, and its commencement should not be 
longer delayed. The benefit would be im- 
mediate on its completion; and, while the 
advantage to Texas would undoubtedly be 
greater than to any other section, yet the 
advantage to the whole United States would 
be beyond calculation. 

Next in importance to quick and cheap 
transportation facilities, are the facilities for 
quick communication. If we would do a 
large and satisfactory trade with China, we 
must have a good mail service, and also a di- 
'rect telegraph service. For the latter, we 



76 

need a cable across the Pacific. This should 
also be a government undertaking, and its 
execution should not be delayed. 

It might be asked why we need all these 
things at once. It can be answered, because 
in entering upon new fields of enterprise, we 
must have complete facilities. Here at 
home, when we undertake to open trade in 
a new section, the pioneer is not long in 
demanding of the government a regular mail 
service, and in carrying on the work of de- 
velopment, there is provided in due time 
railroads, telegraphs and express facilities, 
for all of which every encouragement is 
given, and much money often paid. 

All of these things mean expansion. Far 
be it from me to advocate that the United 
States should become a conquering nation. 
But lam equally far from acquiescing in that 
policy which is promulgated by those who 
call themselves Anti-Imperialists, in accord- 
ance with which policy this government 
would shirk the responsibilities of civiliza- 
Ition. Every phase of every expansion of 



77 

this country's interest has brought to us 
beneficent results. It is but little more 
than fifty years since the same controversy 
about expansion and imperialism was car- 
ried on about the Mexican war and the an- 
nexation of Texas, that is now being carried 
on about the Philippines. It was charged 
that the war was for conquest, for militar- 
ism, for the perpetuation of slavery, that the 
soil was worthless, and the climate intolera- 
ble, that the heterogeneous population then 
here could never be controlled or civilized. 
You have made the answer to those evil 
forebodings, and what is it? Here we have 
now a State which some of your people claim 
will in less than a decade be making more 
cotton than Mississippi, more rice than 
South Carolina, more cotton oil than Geor- 
gia, more sugar than Louisiana, more com 
than Nebraska, more wheat than Minnesota, 
more horses than Kentucky, more cattle 
than Wisconsin, and more lumber than 
Michigan. I cannot vouch further for this 
statement than to say that it is made on the 



78 



claim of a gentleman here in Dallas. But, 
even if the above claim is in some degree in- 
correct, the casual observer, in traveling 
over your State, can now see that it will be 
near enough true to illustrate the principle. 
In peace, these are some of the resources for 
the nation that Texas gives, while in any 
war your rangers and rough riders bring to 
our armies a fearlessness and invincibility of 
spirit that insures victory wherever they are. 
What the anti-expansionists in your day 
of trouble, called a desert, you have turned 
by artesian wells into the best watered State 
in the Union. You have built colleges, 
schools, railroads, telegraph lines. You have 
built cities, and founded systems of agricul- 
ture, manufactures and commerce. The 
opponents of that war and of your annexa- 
tion said that this soil, of whose fertility you 
are so justly proud, could never be populated 
by a people who would be homogeneous in 
taste and character with the population of 
the rest of the United States. Yet it comes 
to pass now that I find the distinguished ex- 



79 



minister to Siam and my humble self mak- 
ing speeches on the same platforms in 
Pennsylvania and in Texas within the same 
week and in the same cause — the develop- 
ment of American manufactures, and the 
expansion of American commerce. Demo- 
crat as I am, I favor more heartily than I can 
express, the policy (as far as it goes) of the 
Republican administration, in reference to 
the Philippines and the East. I believe that 
it would be wise for our government to go 
further and take steps to protect our increas- 
ing trade in cotton and cotton goods with 
China. This is at present of even more im- 
portance to us here in the South than the 
Philippine question. With that trade and 
its future extension secured, we have a vast 
opportunity for extending the production 
and manufacture of cotton. We may then 
build more and more mills to the limit of 
available labor. If we lose that trade, then 
we have too many mills already. If our 
government fails to take steps to insure the 
integrity of the Qiinese Empir^ and protect 



to 



our trade there under our treaty rights with 
China, then Russia will make the cotton and 
cotton goods for the present and future 
trade in Manchuria, where so far, most of 
our trade lies. 

We hear about the iniquity of war. When 
your battle of freedom was being fought, the 
greatest iniquity of that war was the opposi- 
tion at home to the patriots like Houston, 
Bowie, Crockett, Bonham and others who 
conducted it. So also, the worst iniquity of 
this war in the East is the same evil and mis- 
guided opposition to those who have the 
responsibilities of its conduct. I am of those 
who believe that no set of people could, if 
they desired, stop the progress of civiliza- 
tion. If it could have been done, we peo- 
ple of the South would have blocked it here 
by the perpetuation of slavery. We can no 
more stop the Star of Empire in its west- 
ward course than we can stop the sun from 
rising and setting, or the tides from flowing. 
The Philippines are as important to us and 
as full of promise to-day as Texas was when 



81 

its annexation was under discussion. What 
was in the past the Orient, but what is now 
our far West, is necessary to you to sustain 
your increasing production of cotton and to 
support your cotton mills. In turn, their 
natural products will be developed, and you 
will bring them here in exchange, thereby 
benefiting both sections. The hand of 
Destiny can be seen in all the events that 
have transpired. Those who oppose the 
beneficent work of expansion and civiliza- 
tion simply strengthen the hand that is do- 
ing the work. It will go on in the Philip- 
pines and in South Africa, in spite of all op- 
position, till the dawn of the day when bar- 
barism has ceased to exist and the work of 
the missionary and pioneer is done. 

In the discussion of the development of 
this country's resources it would be useless to 
speak with less than full frankness. When 
I worked as a machinist in Pennsylvania, I 
was a Sam Randall Democrat, which means 
that I was a protectionist. In all my con- 
tact with the development of the resources 



of the South, I have favored protection. I 
do not mean by this that my ideas of protec- 
tion are comprised in high import tariffs. 
Your wool, lumber, rice, sugar and cattle in- 
dustries are protected by fair import duties 
and they ought to be. Protection for your 
cotton, for your cotton goods, for your 
wheat, corn and cotton oil lies in fostering 
American trade abroad, in creating and 
maintaining ship lines, in building the Nica- 
ragua Canal. One of the most important 
protective influences for the development ol 
your manufactures is education, and espe- 
cially education and training combined: tex- 
tile science and art. Measures for protec- 
tion should be carefully considered, and the 
remedy applied according to needs of each 
case. Sometimes a reasonable import duty 
is the remedy, sometimes education is the 
remedy, and sometimes transportation fa- 
cilities is the remedy. 

I have spoken of labor as the one adverse 
condition to cotton manufacture in Texas. I 
should perhaps add that your banking inter- 



83 

est rate is now against you also. With the 
establishment of manufactures, however, this 
will change. Your banks charge high rates 
because they have to do so. Your business 
is by seasons. The factory furnishes regular 
business all the year, and the rate can be 
reduced to the advantage of the bank and all 
its customers, when enough regular business 
is offered. Our rate in North Carolina was 
once as high as yours. Now it is 6 per cent, 
in cotton factory sections, and the farmer 
benefits by this change. , 

Much has been written and said about the 
inadaptability of Southern people to manu- 
facturing pursuits. The history of manufac- 
tures in the United States does not bear out 
such an idea. In the early days the Puritan 
and the cavalier were alike farmers. Then 
came slavery in a mild form and limited ex- 
tent, and existed more than lOO years in 
New England before it was tolerated by law 
in Georgia. Then there was a condition of 
manufacturing, in which the South far siu*- 
psissed the North. Even as late as 1810, the 



84 

United States census shows that the manu-- 
factured products of Virginia, the Carolinas 
and Georgia exceeded in value and variety 
those of all the New England States com- 
bined. The first steamship ever to cross ther 
ocean went out of Savannah, Ga. The 
South Carolina Railway, when it was built, 
was the greatest engineering enterprise in 
the world. I recall these facts here not to 
make invidious comparison, but to show to 
you Texans, whether you come from Ver- 
mont, Pennsylvania, South Carolina or Ala- 
bama, that there is nothing in the climate 
or the people that is adverse to manufac- 
tures. What went with this early manufac- 
turing? It was stifled by the growth of 
slavery. What happened when slavery was 
abolished? After one or two decades of 
political anarchy, and as soon as order was 
restored, manufactures were at once re- 
established. Many of the prosperous cot- 
ton mills of the South are now standing 
upon sites where iron works were operated 
more than a century ago. The Clifton, the 



85 

Henrietta, the High Shoals and other cot- 
ton factories are now operating upon the 
sites of old iron works; and there are manv 
others. The people of the South have a 
fine heritage of capability in manufactures. 
You people of Texas have also here many 
people from other parts of the United States, 
^nd especially from New England who bring 
also a fine heritage of the same kind, and 
of later date. Together you ought to have 
.no difficutly in working out this problem of 
<:otton manufacture, and I believe you will 
do so at an early date. 

I want to extend to the officers of your 
•Association my high appreciation of the 
honor conferred on me by your invitation 
to speak here, and I thank the audience for 
the kind hearing I have had. 



CHAPTER V. 

(Tbe 'Revival of profitable Hdricul 
ture in tbe Soutb. 



An address delivered October 23, 1899, by invitation 
of, and before The Convention of Commissioners 
of Agriculture, Atlanta, Ga. 

Competition in the production of cotton 
has brought the quantity of the crop to 
enormous proportions, and the price to a 
figure that, as a rule, brings scant profit to 
the producer. This has brought agriculture 
in the South into a depressed condition, and 
has led to much discussion of the best means 
to improve the condition of the farmer. 

One of the favorite propositions is to cur- 
tail production, and thereby stimulate the 
price. The co-operation of cotton planters 
to effect a curtailment over the entire South 
is naturally very difficult, and practically im- 
possible. But even if it were possible, any 
result in the way of increase of prices would 



87 

be only temporary; because, even at the low 
prices that have prevailed in latter years, we 
have done no more than hold our own in 
controlling the production of cotton. India 
and Egypt compete with us closer to-day 
than ever before. India makes more cotton 
to-day than we did twenty years ago. Un- 
der English control and direction, the pro- 
duction of cotton in Egypt is constantly in- 
creasing, and what is more serious still for 
our home producer, Egyptian cotton is now 
being . imported into the United States in 
large and increasing quantities. If our 
planters could curtail production and there- 
by increase price, the increased crops of 
India, Egypt and South America would soon 
bring the price back to a figure that is 
evidently within their reach, and the only 
permanent result would be the loss to our 
people of a part of the trade in cotton which 
we now control. 

Our people have given a large measure of 
attention to developing and extending a 
knowledge of improved methods of agricul- 



88 

ture. In this they have been wise, and it is 
mainly by this means that the South has 
maintained ccmtrol of the production at the 
constantly decreasing prices. The foreign 
cotton producer has followed close on our 
heels in adopting new and improved meth- 
ods. But our people have kept ahead in a 
hard race by constant improvement. They 
have founded and maintained agricultural 
colleges, agricultural experiment stations, 
inspectors of fertilizers and departments of 
agriculture. But while all these means have 
served to keep the production of cotton with 
us, they have not brought the farmer to 
prosperity. 

Improved methods of farming alone 
would not have been enough to keep our 
people in control of the production of cot- 
ton, as against the competition of India and 
E&ypt- It h^s been necessary to find im- 
proved methods of ginning and baling cot- 
ton. Constant improvement has been made 
in the appliances for ginning and baling 
cotton. Since the civil war, the system of 



89 

ginning and baling cotton has been com- 
pletely revolutionized three or four times. 
To-day it is more apparent than ever before, 
that still further improvement is close at 
hand. The cost of ginning and baling cot- 
ton was formerly $5 per bale. Now it is 
done better for $1 per bale. It is only by 
the adoption of more economical methods 
that we have been enabled to continue in 
a competition, that looked as if it had in each 
year reached its limit. 

An important factor in favor of the Amer- 
ican farmer has been the development of the 
cotton oil industry. By means of this 
development, a very considerable auxiliary 
value has been added to a farmer's crop by 
the demand for cotton seed. The products 
from the seed, now worked, bring nearly 
one hundred million dollars annually to the 
cotton growing States. This has been a 
great help, and the development of this in- 
dustry constitutes a move in the right direc- 
tion. 

I conceive the present status of the cotton 



90 

farmer to be about as follows: At the end 
of the civil war, cotton brought an excellent 
price. Yet the war left the planter in such 
poverty that he scarcely made more than a 
living, even at the high price. This was 
largely due to the disorganized condition of 
labor that succeeded the war. 

As time went on, the crop increased, and 
the price decreased, each to such an extent 
as on the average to keep the farmer about 
even. Without wise forethought and con- 
stant improvement, this could not have been 
done. Each step of improvement has been 
necessary to hold the cotton trade. With- 
out the colleges it could not have been done. 
Without the development of the fertilizer 
business and its honest control, it could not 
have been done. Without the development 
of the cotton oil business, it could not have 
been done. 

But now the field of improvement and re- 
duction in cost seems to have reached a 
point where they cannot in the future be 
altogether relied upon as in the past. Yet, 



91 

having reached this limit, India and Egypt 
Still press us, the latter country having 
established a trade in this country. We 
have seen that there can be no curtailment 
of production, except with loss of trade. 
Then what is the remedy? 

The remedy lies in the establishment of 
manufactures. By means of cotton factories, 
we get more for our cotton, and we also 
create home markets for other farm pro- 
ducts than cotton. Every cotton farmer, in 
making a cotton crop, also makes a lot of 
other farm products, such as corn, potatoes, 
apples, peaches, cabbage, eggs, butter, milk, 
etc. Every farmer could make more of these 
things if he could find a market for them, 
and that, too, without any curtailment of his 
cotton crop. Take a farmer who makes ten 
bales of cotton which is worth say $300. 
Without markets for his other products, this 
three hundred dollars represents his gross 
income. But supposing that in his neigh- 
borhood there were enough manufacturing 
population to consume all the surplus vege- 



92 

tables, fruits, butter ,eggs, milk, etc., that he 
could make. Then he might easily receive 
another $300, making his gjoss income six 
hundred instead of three hundred dollars. 
Therefore, when raising cotton alone he 
might have made a scant living, it is self 
evident that with markets for everything he 
can raise, he could make a living and still 
produce cotton as a surplus and sell it as 
cheaply as anybody in the world. It is by 
this means that the American cotton far- 
mer can, in the future as in the past, keep on 
raising more and more cotton, at such prices 
as will control the markets of the world, and 
save an agricultural development that has 
been made, in America for Americans. The 
American cotton farmer is thus vitally inter- 
ested in the development of manufactures. 
In what way can the farmer best promote 
that development? I answer, in many ways: 
By joining together and raising capital to 
build cotton mills, oil mills and other fac- 
tories suited to the respective sections. By 
advocating and promoting the development 



93 

of markets in foreign countries for American 
goods. For this latter we need shipping 
facilities on the oceans — more especially on 
the Pacific. We are strangely inconsistent 
in our support of schemes for domestic 
transportation on the one hand, and ocean 
transportation on the other. We vote bonds 
for any sort of a railroad scheme, and think 
the money is well spent, if the road is built, 
even ?f the money is lost. But if a subsidy 
for a ship line is mentioned, we are at once 
shocked at the idea. 

We have reached a condition in our manu- 
facturing developement when our factories 
can make in eight months all the goods we 
need at home for the whole year. Yet we 
manufacture in America only one-third of 
our cotton. If we would continue a de- 
velopment so essential to the farming inter- 
est, we must find markets for our surplus 
goods, and we must have the help of the 
farmer in finding the markets, and creating 
the facilities. 

We hear about the competition of New 



04 

England and the South in cotton manufac- 
ture. There is no such competition, if we 
extend our markets. With the trade of 
China kept open, there will be more goods 
needed than we can make in America — New 
England and the South put together. If we 
fail to extend our foreign trade, then we 
have too many mills already, and none can 
prosper. 

The need of the American farmer is bet- 
ter markets. He needs home markets for 
his food stuffs and foreign markets for his 
cotton. 

By the development of manufactures, the 
farmer gets his home markets. 

By the development of foreign trade, the 
South and the East are kept out of com- 
petition, and there is room for more mills 
in the South. The interest of the New Eng- 
land manufacturer, the Southern manufac^ 
turer and the Southern cotton farmer all lie 
together in the development and mainten- 
ance of our export trade. 

I regard it to be a matter of the greatest 



95 

importance that our people should not make 
a mistake between trusts (or combinations 
formed in restraint of trade, and to eliminate 
competition) and other associations formed 
to meet the enlarged requirements of our 
expanding commerce. The latter are bene- 
ficent in purpose and effect, and are essential 
to the continued growth of our commerce. 
The only dangers before us in the way of 
monopoly are a possible monopoly of trans- 
portation, and a possible monopoly of money 
or credit. If it should ever come to pass 
that the former danger became really serious 
the remedy would be in the government 
ownership of the railway tracks, letting com- 
panies operate trains upon them on equal 
terms, and under regulations just as boats 
are now operated upon the rivers. 

In the case of banking, our present na- 
tional banking laws should be so amended as 
to abolish the use of United States bonds as 
a basis of bank note issue, and substitute 
therefor the assets of the banks as a basis of 
note issue. The government might collect 



96 

from the banks and hold a guarantee fund of 
five or ten milHon dollars to secure these 
notes, after the exhaustion of all the assets 
of any bank that might break. This method 
is now in use in Canada, and works well on a 
gold basis. Or our government might col- 
lect a tax of I per cent., as it now does, on 
all note issues, and in return for this tax 
or premium, guarantee the notes. The ex- 
perience of Canada and Scotland, in both of 
which countries banks issue notes on their 
assets, show that the loss is far less than 
one-fifth of i per cent. 

This would practically put our home 
banks in shape to re-discount, under govern- 
ment supervision, its own paper (when 
necessary to re-discount) at the rate of i per 
cent., the government tax. 

The movement to issue greenbacks, sev- 
eral years ago, was a mistake. The move- 
ment to establish sub-treasuries was a mis- 

« 

take. 

The controversy now about gold and sil- 
ver as a basis is, to my thinking, not relevant 



97 

to the grievances of the people on this sub- 
ject. 

The need is an amendment to the pres- 
ent banking system, that will permit bank- 
ing to be done at home for each section, in 
all its functions. Our present system is a 
good one for deposit and discount. We 
want to amend it to vitalize the credit or 
note issue feature. 

We don't want any reduction in the limit 
of capital necessary for a national bank. The 
limit ought rather to be increased, so that 
the minimum would be not less than 
$100,000. If local banks had the right of 
note issues on assets, then the subject of 
warehouses and money for farmers on ware^ 
house receipts would settle and regulate it- 
self. There is money enough in the South 
for all bank purposes, if the banking system 
could be so amended as to make home prop- 
erty available for banking and credit pur- 
poses. This proposition stands good 
whether the basis or standard of values is 
gold or silver, or both, in any ratio. 



98 

Regulate the transportation of the coun- 
try so that the facilities and cost are equal 
to all alike, and amend the banking law so 
as to make home property available for 
reasonable home credit. Then the affairs of 
trade and commerce will regulate them- 
selves. Legitimate combinations would then 
survive, because of their beneficent results 
in enlarging trade. Improper combinations 
would go down, because, in an open field and 
a fair fight, they could not survive. 



CHAPTER VI. 

ZTecbnical £2)ucation. 



An address delivered to the students of the North 
Carolina Agricultural and Mechanical College at 
West Raleigh, December 15th, 1899. 

I have come nearly one thousand miles to 
undertake to make an address to you and I 
have done so with an earnest appreciation of 
the responsibility that it is for any man to 
appear before a representative body of young 
gentlemen to give advice and counsel to the 
coming generation, as it were. 

I have come from my work, and appear 
before you in my working clothes. If I had 
done this ten years ago I would have ap- 
peared in a suit of overalls, with a hammer 
in one hand and a coal chisel in the other. 
I regard it to be far the most important 
feature of my education as an engineer that 
I served an apprenticeship at the machin- 
ist trade, and had a long term of experience 
as a journeyman machinist. I also had a 
service as draughtsman, and then as master 
mechanic of a large manufacturing plant. It 
was ten years after I graduated from the 



•. •••••? . • • 



100 



Renssalaer Polytechnic Institute, of Troy^ 
N. Y., as an engineer before I assumed to 
undertake any comprehensive engineering 
work on my own responsibility. This ten 
years was a period of practice and arduous 
training. 

As the burden of what I shall say to you 
tonight will be to emphasize the importance 
of training and skill, as well of study and 
knowledge, I hope that the scant reference I 
have made to my own work may be taken as 
simply to show, at the outset, that I have 
conscientiously practiced what I shall 
recommend and urge upon you as being 
necessary for the best interests of Southern 
progress, and for your future welfare and 
success in Jife. 

Enough has been said and written about 
the value of technical education to create 
great expectations on the part of those who 
have been its promoters and patrons, and 
while in some instances there has been dis- 
appointment. Sometimes mothers and 
sisters have kept boarders and washed dishes 
to keep a bright son and brother in school, 
with the fond expectation that when he 
graduated he would get a position at a good 
salary, set up a house for them to keep, and 
with nothing else to do. It has sometimes 
happened that the young graduate has re- 






101 



turned home with a fine education only to 
add an unprofitable member to the house- 
hold. His mother and sisters could observe 
that he had learned much, that his conduct 
was gentlemanly, and honorable, that he 
industriously sought employment, that he 
was perfectly willing to work, yet he found 
nothing to do. Under these circumstances 
there is naturally disappointment. For the 
time being it would naturally seem to them 
that technical education had not all the 
advantage claimed for it. The trouble in 
such cases is that the young man has been 
amply equipped in the matter of teaching, 
but he was deficient in training or skill. He 
knew the theories but had served no appren- 
ticeship. 

There have been absolutely no cases where 
knowledge and skill have been combined 
where easy success has not followed. 

' ENGINEERING AND MUSIC. 

Engineering is a science and an art. For 
the science careful study is necessary. For 
the art arduous practice is necessary. It may 
be compared to music, which is also a science 
and art. Let us suppose it had been the 
sister who was to have been educated, and 
music was to have been her career. If she 
liad gone to a conservatory and studied to 



102 



the utmost limit all the science of musiC|. 
but had never practiced it, what could she 
have done in giving a concert ? If she had 
come home thoroughly equipped in the 
science of music, but without practice, she, 
too, would have been compelled to become 
one more of the household to be supported. 

There was a time when, for an ordinary 
community, the musical requirements were 
simple. Whoever could turn a tune on a 
violin, or thump a tune on a piano by ear,, 
was a musician. 

So, also there was a time when the man 
having practice but no education — the self- 
made man of the former generation — was 
the great boast of his day. With the more 
exacting conditions of these modern times^ 
with the advancing of civilization, we hear 
nothing about the self-made man, about the 
man whose college was a canal boat, whose 
campus was a canal boat, of the canal. ' 

These were men, however, of sterling 
worth. While they had scant knowledge, 
they had amazing skill, and they performed 
wonders in handling humanity and in ac- 
complishing material results to their conn- 
try s advantage. Some of them, realizing 
their own deficiencies in education, and 
realizing what a tremendous advantage ad- 
ditional would have brought to them, founded 



103 



schools, but, remarkable to relate, they 
caused to be formulated, in most cases, 
courses of instruction in what they were 
themselves deficient in and omitted all care 
as to the reliable training that they possess. 
They founded universities and systems of 
training or practice. 

Perhaps the best educated people whoever 
lived in the United States were the Southern 
planters' sons before the civil war, if their 
future occupation is taken into consideration. 
These, in their youth, all had a full ap- 
prenticeship in the work of planting cotton 
and tobacco. Whether required to do it or 
not they rode mules, drove wagons, and did 
all the operations on a plantation. The 
young man growing up on a plantation not 
only knew about mules in general, but he 
knew the characteristic of each mule on the 
place. He knew every negro on the place. 
He knew every ordeal of the plantation life, 
and at an early age knew these details better 
than his father did. Add to this perfect ap- 
prenticeship a college education and you 
have the education of the men who, in the 
ante-bellum days governed the nation. They 
were successful in the government of the 
nation because for the then existing condi- 
tions they had been well educated and 
trained. 



104 



VAI<UE OF TECHNICAI< EDUCATION. 

In material value a well rounded technical 
education, made up of equal parts of know- 
ledge and skill, is di£Scult to estimate. The 
Renssalaer Polytechnic Institute was founded 
in 1820, and the graduates were the chief 
factors in the development of American rail- 
way system, in contra-distinction to the 
English system, which latter was followed 
and copied throughout Europe. These 
graduates almost invariably started in rail- 
way service as rodmen and chainmen. And 
they do as yet, at pay something like $30 a 
month. They then find places as section 
bosses, then as division superintendents, and 
finally as presidents, as was the case with the 
late Mr. George B. Roberts, who was the 
president of the Pennsylvania Railroad, and 
Mr. A. J. Cassatt, who is now president. We 
have far the finest and most practical system 
of railways in the world, and the distinction 
of the s'/stem is its originality. The Ameri- 
can bridge system is also the outcome of that 
school. The Reeves, of the Phoenix Bridge 
Works, and the Roeblings, who built the 
great Brooklyn bridge, are all graduates from 
Renssalaer. 

In metallurgy we always needed high 
protective duties until the Columbia College, 



105 



New York, sent out some graduates who 
were well equipped in metallurgical know- 
ledge and in skill. I regard that the rapid 
progress we have lately made in the pro- 
duction of cheap and excellent iron and steel 
on an expert basis to be due more to the 
work done by the graduates of that school 
than to any other cause. There are now a 
number of schools in both engineering and 
metallurgy, that are turning out graduates 
that are as well educated as those who come 
out of the schools referred to, but those who 
led the way in the respective subjects. The 
magnitude of the developments in each of 
these divisions of industrial progress have 
been simply stupendous. We have more and 
better railroads than all the rest of the world 
put together and after a long and hard fight 
of England to keep her system as the stand- 
ard one for foreign countries, and very littl e 
on our part to introduce ours, it has come to 
pass that ours is credited as being much the 
best and is now being readily introduced in 
many foreign countries, notably in Russia. 

In pig iron and steel we have also brought 
out processes and methods to such perfection 
that we make the best and cheapest product 
in the world, and our expert trade in these 
is growing to enormous proportions. 

Unhappily, we have no such schools in 



106 



applied chemistry in what might be called 
chemical engineering nor in textile engineer- 
ing. These are fields practically as large as 
the others and upon a scientific point of 
view, are practically untouched in America. 
Chemical engineering might bring wonder- 
ful results out of our cotton oil and other 
raw products. Geometry has given much 
attention to the development of applied 
chemistry, and as a result she has magnifi- 
cent chemical works, in which even coal tar 
and many valuable products are obtained, 
such as anelyne dyes, medicines like phenac- 
intine, antipyrine and other valuable stuffs. 
Germany has also developed a system of 
textile schools, as a result of which we send 
our cotton to chemists at six and seven cents 
a pound, to be manufactured there and sent 
back to us in the shape of knit goods at one 
dollar and upwards a pound. All the freight 
charges going and coming are paid to Ger- 
man ships, always to German labor, and all 
the dye stuffs come from the German manu- 
facturers. We simply get our seven cents 
and pay our dollar. 

Let us look into one of our own homely 
products and see what we might make of it 
if our people had the knowledge and the 
skill. Reckoning our North Carolina cotton 
crop as worth to the producer an average of 6 



107 



cents from one year to another, we would 
have 500,ocx) bales, as cotton at 6 cents 
yields $i5,ocx),cxx). This same cotton, man- 
ufactured into cotton cloth would be tripled 
in value, and 50o,ocx> bales as cloth at i8 
cents yields $45,000,000. 

We already manufacture about three hun- 
dred thousand bales into yarn, or white and 
colored cloth, which means that we are turn- 
ing about ten million dollars worth of cotton 
into thirty million dollars worth of product. 
We do this with our own home people as 
operatives, and therefore, between the manu- 
facturer, the operator and the foreman, the 
whole two hundred per cent is profit. 

With agricultural colleges, experiment 
stations, fertilizer control, and by other 
means wisely prepared by our legislators, we 
have been able to keep down the cost of pro- 
ducing cotton to an extent to continue to 
control the production. The production and 
prices show, however, that we have reached 
a ten million bale crop, which at 6 cents has 
yielded us $300,000,000. We find that when 
we have a five million bale crop it yielded us 
12 cents, or the sum of $300,000,000, and 
when we made two and a half millions it 
yielded 24 cents, or again the same $300,000- 
000. Could we have curtailed the produc- 
tion and increased the price? Such a plan 



108 



would seem to me impossible. India, copy- 
ing our method and buying our machinery, 
is already producing more cotton than we 
did twenty years ago. Egypt is also, even 
at the low prices, increasing her production. 
The English, who control both those coun- 
tries are exerting themselves to the utmost 
to stimulate cotton production in those coun- 
tries. 

We have reduced the cost to a point where 
further reduction can only be a differential 
quality, a saving of one cent a pound in 
producing the entire crop of the State would 
only aggregate two and a half million dol- 
lars, whereas the same crop manufactured 
into plain cloth would be increased in value 
$30,000,000. In the distribution of this 
aggregate gain the farmer would be the 
greatest beneficiary. Because of the prox- 
imity of the mills the North Carolina farmer 
already gets from J^c. to ic. more for his cot- 
ton than the Texas or Missouri farmer gets. 
This is not all, however, he gets home mar- 
kets for his fruits, vegetables, poultry, milk, 
butter and a great variety of perishable food 
stuffs that can be produced on a farm while 
the operatives of the neighboring factory 
makes a market. Whenever cotton is 
tripled in value by manufacture, the adja- 
cent lands are tripled also in value. The 



109 



increased price of cotton, the increased price 
of land, and the increased markets are all the 
farmers gain to say nothing of the new ave- 
nues of success and fortune opened up to his 
sons and daughters. Amongst our people the 
farmers interest in developing manufactures 
is the greatest In truth in this generation 
we can have only such manufactures as the 
farmers develop — ^for all of us are, or have 
been farmers. 

The estimate of an increase to three times 
the value of raw cotton when made into cloth 
relates only to the plainest sheeting and 
plaids. This is what may be done with the 
least possible knowledge and skill. Take 
the fancy ginghams, such as the Toile de 
Nord, made by my friend, Mr. A. H. Lowe, 
in Fitchburg, Mass., and these will reach 60 
cents a pound or ten times the value of cot- 
ton at 6 cents. Our North Carolina crop of 
500,000 bales worth as cotton $15,000,000, if 
made into the ginghams, would be worth 
$150,000,000, or half as much as the entire 
cotton crop of the South brings as cotton. 
Even this is not by any means the limit. My 
friend, Mr. H. H. Hargrove, of Shreveport, 
Louisiana, told lately of having weighed a 
dress pattern of fine French organdie. The 
entire piece weighed one-third of a pound, 
and it sold at 80 cents a yard, or an aggre- 



110 



gate of $24 a pound. The cotton in this 
was of course the best Sea Island, but even 
that probable cost not exceeding 25 cents a 
pound, while the product is selling in our 
stores here at $24 a pound. The diflFerence 
is what we pay the German and French — 
men and women, for their knowledge and 
skill — for their technical education which 
we haven't got. 

The designs of the patterns, are made 
largely by artists which gives much profita- 
ble, agreeable and artistic employment, at 
home, to young ladies, who are educated and 
skillful chemists. It is evident from the 
prices charged for these goods, that every- 
body who works in any of the processes get 
high salaries which makes the goods come 
liigh, but our home young ladies are beauti- 
ful and must have beautiful goods to wear, 
even if the money has to be sent to France 
and Germany because our own people don't 
know how to make the nicer fabrics. I have 
spoken of how a nice gingham costs 60 cents 
a pound. Omitting altogether the really 
finer stuffs such as French organdies, and 
<lotted Swiss muslins, and taking a fabric at 
$1.20 a pound, which could be made with a 
modician of education and training, the 
North Carolina crop of 500,000 bales (I speak 
in round numbers always) would be worth if 



Ill 



manufactured into goods of this value, $300,- 
000,000, or as much as the entire South's 
own crop is worth as raw cotton. I believe 
we have ample population to do this, and 
that all that is needed is knowledge and 
skill, or technical education. 

CAPACITY OF THE PKOPI<K. 

Twenty years ago our friends in New Eng- 
land asserted with some emphasis that 
Southern people could not manufacture cot- 
ton at all. It was said that the climate was 
enervating, that the people of the South had 
no mechanical taste, and a lot of other rea- 
sons were given why the attempt would fail. 
But it succeeded. Then it was said that 
some coarse goods might be made but never 
the finer stuffs. It is not a matter of inher- 
ent capability nor of climate, but purely one 
of technical education. 

The development of our manufacturers in 
the last twenty-five years is a revival rather 
than a new development. The taste and ca- 
pability exhibited by the present generation 
is an inheritance, and not a thing of entire 
new birth. In the early days of the Republic, 
the South was the manufacturing one of the 
Union. By the United States census of 1810 
the manufactured products of Virginia, the 
Carolinas, and Georgia exceeded in value 



118 



and variety those of the entire New England 
states and New York put together. The 
Henrietta Cotton Mill, near Rutherford, is 
on the site of an old iron works. The High 
Shoals Mill, now being built near Lincolnton, 
had to be cleared of some brick stacks of old 
Catlin forges to make way for the new foun- 
dations. Throughout the Piedmont region 
there are many evidences of former extensive 
manufacturing plants and much prosperity. 
I have at home a copy of a contract in ac- 
cordance with which a machinist at Lincoln- 
ton made all the machinery necessary to 
equip a cotton mill complete, having a date 
in 1813. 

This manufacturing spirit and its success 
gave rise to many schemes for internal im- 
provement. Iron and other goods were car- 
ried from the I/incolnton and other Piedmont 
sectionstoFayettevilleby wagon, and thence 
down the Cape Fear River on boats, and 
thence to Boston in sailing vessels. 

The poison that ultimately destroyed this 
development — these great Southern manu- 
facturing interests, was the institution of 
slavery. As this grew in strength manufac- 
tories declined until by the time of the war 
they were well nigh dried up. There were 
those, however, who made a tremendous 
fight for their preservation and for the exclu- 



113 



sion of our commerce. The founders of the 
Republic, most of the leaders amongst whom 
were Southern men, did everything in their 
power to develop American manufactures, 
and retain American commerce, and these 
principles made better headway at that time 
in the South than in the North. Charleston 
had fair promise at one time of becoming the 
greatest American port. It was a promise 
based upon the capability and enterprise of 
her people. When the South Carolina Rail- 
way was built it was one of the great engin- 
eering works of the world. It was extended 
from Charleston to the head of navigation on 
the Savannah River, to take the cotton com- 
ing down the river in flat boats by rail to 
Charleston instead of letting it go in boats to 
Savannah. They extended a branch to 
Columbia to catch the cotton on the Conga- 
ree in the same way. Then they undertook 
to get a line through to the Mississippi river 
at Memphis, there to catch the cotton and 
Northwestern produce and turn it to Char- 
leston. Largely by the influence of the peo- 
ple of Charleston, the State of Georgia either 
aided or wholly built roads from Augusta to 
Atlanta and from Atlanta to Chattanooga-^— 
calling the latter the Western and Atlantic, 
the name indicating what the motive was in 
its building. There pushing on further the 



114 



Memphis & Charleston was built from Chat- 
tanooga to Memphis, the name again with it 
some meaning as to the plans. When this 
road was finished, making a thorough route, 
there was a special run over the entire route 
carrying a party of Charleston and Memphis 
people, and also carrying a barrel of water 
which had been taken out of the Mississippi 
river, and which was emptied into the bay 
at Charleston, indicative, as it were, of the 
future course of the Mississippi river 
commerce. While not appreciating the 
increasing strength of slavery or its blighting 
influence, the people of the South, observing 
the tendency of manufactures to decline, 
made heroic efforts looking to internal devel- 
opment. After successfully developing a 
great railway line to Memphis the people of 
Charleston formulated plans for building a 
direct road from Charleston to Cincinnati. 
Mr. Robert J. Hayne was the chief promoter 
of the enterprise, and devoted much time to 
it. In getting the necessary legislation, his 
talents excited such admiration that he was 
sent to the United States Senate as the col- 
league of Mr. John C. Calhoun, and the 
debates betwixt Webster and Hayne about 
slavery were perhaps the most noted that 
ever were conducted in the United States 
Senate. But Mr. Hayne, even at the height 



116 



of his poetical fame, never lost sight of inter- 
est in his Charleston-Cincinnati Railroad, 
and in the interests of his Congressional 
duties he spent much of his time in Ashe- 
ville, N. C, looking after his interest. 

There was an extraordinary situation. Mr. 
Hayne was at the same time the teacher of 
two tremendous and opposing, for as the suc- 
cess of either of which meant the destruction 
of the other. 

Had the road to Cincinnati been completed 
the tide of the export commerce from Pitts- 
burgh down the Ohio, thence from Cincin- 
nati to Charleston, the agricultural products 
from Ohio, Indiana and Illinois, then the 
Northwest, but meagerly developed, and 
from the States south of the Ohio would 
probaby have led to interests greater than 
that of slavery, and therefore to the peaceful 
abolition of the institution. Mr. Hayne suc- 
ceeded, however, better with his defense of 
slavery, than in the construction of his great 
railroad. 

In North Carolina Colonel John M. More- 
head led the forces for internal development, 
and the extension of commerce. He caused 
to be built the North Carolina Railroad, 
reaching from Goldsboro to Charleston. Then 
also the road from Goldsboro to Montreal. 
These plans were formulated to build a road 



116 



from Salisbury to the Tennessee line near 
Ducktown. It was then contemplated to 
form a private company to build a connection 
through to Chattanooga, thus reaching Mem- 
phis over the Memphis & Charieston. If 
this road had been built and the roads all 
consolidated, then North Carolina would now 
have a direct line from Memphis to tide 
water at Morehead City. Every phase of the 
history of your ancestors and their work, 
shows them to have been men of sterling 
abilities and great enterprise. They ruled 
the government in those days because they 
had the best possible education and training 
in practical affairs. 

The increasing agitation about slavery and 
the increasing interest taken by Southern 
people in the subject gradually drew interest 
and energy away from the beneficent works of 
of enterprise, and brought on the civil war 
with the disastrous results. 

SO-CAI.LED RECONSTRUCTION. 

Comparing the wealth of this State with 
that of Massachusetts, it may seem to you 
that your parents would leave you a scant 
inheritance. It may seem as if they had not 
made much of a success of life. Let us see 
to this. In the period that succeeded the 
civil war the whole South was plunged inta 



117 



a state of semi-anarchy. After having all 
their property swept away, and the former 
system of labor completely destroyed, your 
parents had forced upon them an experiment 
in human affairs never before attempted in 
the world. It was one involving the ability 
of the white race to preserve the Anglo-Saxon 
civilization under the most adverse condi- 
tion and the most powerful opposing influ- 
ences. Under far less pressure, the Latin 
race in Cuba and South America descended 
towards the inferior race. In a war for civ- 
ilization lasting for a quarter of a century, 
your father has held one hand ready at all 
times to defend their homes while with the 
other, the resources of the country has been 
taken care of. They have furnished the mo- 
nopoly of the production of cotton. They 
have paid one-third of an enormous pension 
list, getting nothing in return. They have 
paid two dollars for education for every one 
that could be applied to the education of 
their own sons. 

In the short period since the restoration of 
good government they have returned to the 
occupation of their ancestors, manufacture, 
and have demonstrated that cotton goods 
may be made here to advantage and profit, 
and on an export basis. They have devel- 
oped a splendid industry in cotton oil, and 



118 



on an export basis. In other parts of the 
South the passing generation has demon- 
strated the value of other resources, and the 
practicability of developing them profitably, 
such as iron, lumber, phosphates, etc. They 
have founded such schools as this, to prepare 
you to take charge of this great inheritance. 
All this is to be delivered to you unencum- 
bered for you as it has been for them in the 
past. 

They have won the fight for civilization. 
There is no race problem now. There is no 
anarchy. You have as fine opportunity before 
you as ever a generation of young men had 
in the world. If each of you, taking advant- 
age of these opportunities, should grow rich 
and should build honor for your parents and 
keep them in luxury the remainder of their 
days, you would not approximately settle the 
debt you owe them for what they have en- 
dured for civilization and for your welfare. 

THE REAI< RECONSTRUCTION. 

The real reconstruction of this State is in 
your hands. It is for you to take up the 
great work of internal development where 
your grand parents left it off. I have 
attempted to show that you come of a race of 
broadminded, progressive and successful 
men. In their day and time they fostered 



119 



by wise means the development of manufac- 
tories. They formulated and executed com- 
prehensive plans for internal development. 
They created and put in motion a system of 
agriculture which has resulted in the pro- 
duction annually, of ten million bales of cot- 
ton in an area that is small as compared with 
the cotton areas of China, India, Egypt and 
South America, and with a production that 
is insignificant as compared with that of 
India alone. This is the greatest result in 
agriculture ever accomplished by any people 
in the world. 

Your forefathers made one mistake — com- 
mitted one error — slavery. The whole indus- 
trial fabric of New England is going forward 
to-day on lines that were worked out and 
partly executed three-quarters of a century 
ago by the people of this State. 

Slavery is gone. The anarchy that suc- 
ceeded the civil war is gone. Besides pre- 
serving for you in untarnished purity — the 
civilization of your ancestors, which required 
ceaseless vigilance, toil and privation, your 
parents have laid for you the foundations for 
the re-establishment of manufactures, the 
further development cf agriculture, and for 
renewed zeal in the work of internal devel- 
opment. In the prosecution of this work 
they have not been so situated as to allow 



120 



you luxuries or any form of extravagant 
indulgences. 

Thus it transpires that you have had at 
home a constant discipline in economy and 
self-control that has been Spartan in its 
severity. The very enforced simplicity of 
your early lives, every earnestness of your 
parents in work of saving honor and civiliza- 
tion out of the wreck wrought by slavery 
and the civil war, has kept you in an atmos- 
phere that ought to have made sound minds 
in sound bodies and further qualified you in 
moral character to give you something of the 
abilities of your ancestors. The organiza- 
tion of this very school is part of the work 
your parents have done for your future 
advantage. They are ready to turn over to 
you as a heritage the great resources of the 
South with the work of development already 
well begun. In the short while since they 
returned to this work of development, the 
people of the South have put cotton goods, 
cotton oil, iron and lumber upon an export 
basis. In all these the fires of the new indus- 
try have been started for you. 

It is yet to be seen whether you are capa- 
ble of handling wisely and well the greatest 
heritage ever developed by a going genera- 
tion to a coming one. For myself there is 
not a shadow of doubt about the result. I 



121 



confidently believe that your generation will 
restore to North Carolina the wealth which 
relatively, she once enjoyed, and bring back 
to her people the progressive and ruling 
qualities which were characteristics of your 
ancestors. 

For the future greatness of the State the 
resources are all here. 

We have a race of young men in whose 
veins flow the blood of those who were the 
leaders in the great battle for freedom in the 
latter part of the last century, of those who 
were leaders in the early days made the 
Republic strong by wise and comprehensive 
measures for the development of agriculture, 
manufactures and commerce. 

The mistake of slavery is now a thing of 
the past. The results of the mistake have 
all been repaired by your fathers, except one. 
Our deficiency is Technical ExJucation. Even 
for this they have provided the means; final 
solution of the problem remains alone with 
you. The graduates from this school — the 
classes now before me ought to formulate the 
plans and put in operation of the new sys- 
tems of agriculture, manufactures and com- 
merce that will restore to this State some- 
thing of its former splendor in the Union, 
and that will determine the course which 



122 



every State in the Union must go to keep 
the leading pace that you ought to set 

Mr. President, I thank you for your kind 
invitation to speak here, and in this presence 
young gentleman of the A. and M. College,. 
I appreciate more than I can express to you 
the patient and courteous attention you have 
been good enough to give me. 



CHAPTER VII. 



flDanufacturee* 



An address made by D. A. Tompkins, at the First 
Annual Dinner of The Progressive Association, of 
Edgecombe County, December 28tb, 1899. 

Mr. President and Gentlemen : 

The lamented Henry W. Grady, one time 
editor of the Atlanta Constitution^ was an 
earnest advocate for the development of man- 
ufactures. In an argument on this subject 
he once recited a story of what he observed 
at the funeral of a statesman in North Georgia. 
I will try to repeat Mr. Grady's story from 
memory : 

"The grave was dug through solid marble, 
which abounds in North Georgia, but the 
little marble stone left standing to mark the 
spot came from Vermont. The surrounding 
slopes were fine grazing lands, yet the woolen 
shroud came from Boston, and the shoes from 
Lynn. In the immediate neighborhood iron 
ore abounded, but the pick and shovel came 
from Pittsburg. The shirt came from New 
York, the coffin from Cincinnati, the hearse 



124 



from Chicago, while the only things that 
Georgia furnished for that funeral was the 
hole in the ground and the corpse." 

Since the day when Grady wrote and 
spoke an amazing change has come over the 
face of North Georgia and many parts of the 
South. Today some ot the largest mrvrble 
quarries in the world are in North Georgia. 
Today it has come to pass that the Carolinas 
and Georgia make the price of cotton goods 
in China. Alabama makes the price of pig 
iron in England. The cotton oil industry 
of the South makes the price of lard. 

I shall attempt to point out the causes for 
the long delay of this dawning prosperity 
and the means for its further development 
and continuance : 

It is now more than one-third of a century 
that the people of the South have been wag- 
ing a fierce conflict with poverty and unciv- 
ilizing influences. It is commonly believed 
that the conditions which have existed and 
the hardships which our people have endured 
because of poverty and of political disorder 
have been the results of the war. I do not be- 
lieve this but I believe rather that all of our 
troubles are the results of the mistake of our 
fore-fathers in tieing up the fortunes of the 
South with the institution of slavery. Before 
the permanent establishment of that institu- 



126 



tion the South was far in the lead of the 
other parts of the Union in manufactures, in 
wealth, and in education. 

I have frequently pointed out that the cen- 
sus of 1810 shows that the manufactured 
products of Virginia, the Carolinas and Geor- 
gia exceeded in value and variety those of all 
New England. That at a later period the 
South Carolina Railway, when it was built, 
was one of the most important engineering 
enterprises in the world. That the first steam- 
ship which ever crossed the Atlantic went 
out of Savannah. That there was a scheme 
of internal development in this State by 
which an Atlantic port was to be connected 
by a continuous line of railway with the 
great West. That the execution of these 
great plans was well under way and their 
complete consummation was only frustrated 
by the increasing influence of slavery in all 
the Southern States. 

Before the civil war Louisiana had five 
dollars for every one Massachusetts had ; 
while now the wealth of Massachusetts ex- 
ceeds that of all the cotton growing States 
put together. 

Dr. J. L. M. Curry has pointed out that 
even as late as i860 the educational statistics 
of the North and South were as follows : The 
North had 19,000,000 population, the South 



126 



8,cx30,ooo. The North had 205 colleges, the 
South 262, besides numerous other denomi- 
national colleges. The North had 1407 
professors, the South 1488. The North had 
29,044 students, the South 27,055. The 
North spent for colleges, per annum, 1,514,- 
688 dollars, the South spent 1,662,419. The 
North spent for academies 4,663,749 dollars, 
the South spent 4,328,127 dollars. In those 
days our people spent two and a half to three 
times more money per capita for education 
than our friends at the North did. In the 
light of these facts it becomes plain why 
Virginia and other progressive Southern 
States furnished the statesmen and the 
leaders of those times. 

Going further. Dr. Curry shows that at the 
present time the following are the figures : 
Northern colleges have in productive funds 
102,721,451 dollars. Southern colleges have 
15,741,000 dollars. Northern school money 
is practically wholly applicable to the educa- 
tion of the white or wealth-producing race, 
while the Southern school money must be 
divided with the negro, who is in many re- 
spects, a burden and handicap on the South. 

I cannot believe that the quarter century 
of poverty, of dishonesty in politics, of civil 
disorder, of murder, arson and even rape 



127 



could be the consequence or a natural se- 
quence of the civil war. 

The institution of slavery alone is, in my 
judgment, responsible for the frightful calam- 
ity that the South has suffered. While the 
institution yet lived it bred strife and 
estrangement amongst people of the same 
blood. The civil war itself was but an insig- 
nificant incident of its fall. When the final 
crash came it swept away all property, it 
carried down with it the labor system of the 
whole South, it totally paralyzed for a time 
the educational systems of the States in 
which it had existed, and for a long time it 
threatened to bury in its fall even the social 
system and civilization itself. It cannot be 
denied that both these latter were saved by an 
enduring courage and steadiness of purpose 
possessed only by the sturdiest elements of 
the Anglo-Saxon race. No war could in 
itself possibly bring as a consequence the long 
continued disaster to any country that the 
South has endured for more than a gener- 
ation. 

The Franco-German war was fierce and 
destructive. France paid a fabulous sum for 
indemnity and yet that war left no such 
pestilential anarchy in its wake as the insti- 
tution of slavery and its abolition imposed 
upon the South. 



128 



By far the strangest phase of all this work 
of anarchy was that, until a few years ago, 
its agents had the sympathy, support and 
encouragement of the people of our own 
blood in the North, without which support, 
it could never have lived for an hour. There 
was never one shadow of doubt as to what 
Hampton and his followers could have done 
with the ex-slaves and the thieves, by whom 
they were led in South Carolina in 1876. It 
was simply a question how their destructive 
work could be stayed in a way that would 
not be misunderstood and misconstrued by 
the great majority of our friends at the 
North. 

Thank God, these misunderstandings are 
now past. From the lips of those who were 
our former critics in the North, we now con- 
stantly hear : "If I lived South, I would vote 
as the Southern white man does on local 
matters." 

I have no manner of doubt in my mind 
but that the Ku Klux Clan, in its organiza- 
tion proper and omitting unorganized depre- 
dations and brutalities, was a beneficent 
institution and that it saved civilization in 
the south as the Regulators did in California 
and as the Smugglers saved commerce at 
one time in England. 

Perhaps, after all, everything has been 



129 



for the best. If patient endurance of poverty 
and hard work are of value, then our people at 
the South have had an education for great 
things. In the West Indies and in the East 
Indies, the Nation is taking on new duties 
and new obligations. It is amongst her people 
here in the South that the Nation must now 
find the men schooled in enduring patience 
and immovable firmness in leading an alien 
and inferior people. It is here, too, that all 
the most favorable conditions exist for the 
manufacture of those products most needed 
by these new people. With our knowledge 
of the various phases of humanity, we ought 
to be well qualified to guide the commerce of 
this Nation with all these new territories. 

After the abolition of slavery, those tre- 
mendous forces that had been built up and 
employed to compass that end, ran riot in 
damaging actions like a big engine whose 
main belt and governor belt might break at 
the same time, runs away, bursts the fly-wheel 
and destroys itself. 

The sentiment for abolition was such a 
tremendous force that after abolition, its 
work being accomplished, it could not be 
stayed or controlled, but expended itself in 
creating confusion and hindering the work of 
re-organization to the injury of both the 



130 



white and black man at the South and to the 
injury of civilization. 

In the past everj' white man in the South 
has had to hold one hand at all times ready 
for the defense of his household while the 
other has been kept busy in making a scant 
support for his people. Under less trying^ 
conditions, the Latin race, the strong and 
civilizing white race of two centuries ago, has 
fallen in Cuba and partially fallen in all 
South America. This fight of the white 
people of the South for civilization has, 
because of mistaken convictions, been carried 
on without the sympathy or support of the 
white people of the North, and worse still, 
even against the adverse influences of most 
of .the public opinion there. It is to the 
eternal credit of this generation of South- 
ern white people that they have success- 
fully resisted all degenerating and adverse 
influences, and after a ceaseless conflict of 
more than a quarter of a century the tide is 
now well turned and the work of restoring 
Anglo-Saxon civilization in place of the semi- 
anarchy that has existed, is well begun. 

These introductory remarks bring me to 
the subject you have assigned me : 

MANUFACTURES. 

Reviewing the events that succeeded the 
Civil war and speaking approximately and 



131 



in round numbers but with sufficient accur- 
acy to illustrate what the general results 
have been we find: In the first decade after 
the Civil War our people made 2,500,000 
bales of cotton for which they recieved 24c. 
a pound, yielding $300,000,000. 

In the second decade they made 5,000,000 
tales for which they received 12c. yielding 
-$300,000,000. 

In the third decade they made 10,000,000 
bales for which they received 6c., yielding 
$300,000,000. 

With a largely increased population to 
support, producing four times the cotton the 
same sum of money must nevertheless 
suffice for the increased work, and support 
the increased number of people. Some 
suggest as a remedy curtailment of produc- 
tion, thereby increasing the price. If we 
attempt this we will, in my judgment, throw 
the control of cotton production into India 
and Egypt under English direction and con- 
trol. Even now, in competition and at 
the extremely low prices and in the face of 
our enormous production, India is producing 
more cotton than we did twenty years ago. 
England is also preparing Egypt to become a 
factor in the production of raw cotton ; and 
already we are receiving Egyptian cotton as 
an import into this country and in sufficient 



132 



quantity to cause an item against it to be 
proposed in the last tariff bill. 

It is only by wise legislation for the estab- 
lishment of Agricultural Colleges, boards of 
fertilizer control, experiment stations and 
other similar protective measures that our 
people have been able to continue at all the 
practical control of the production of cotton 
in competition with the increasing efforts of 
the other cotton-growing countries of the 
world. Protection to our cotton farmers by 
means of Agricultural Colleges, experiment 
stations and other similar measures has well 
nigh reached the limit of its development 
If by further perfecting all the measures 
heretofore utilized to help the farmer we 
could bring about an economy of one cent 
a pound reduction, this would amount to 
$5.<X) a bale or $50,ooo,cx>o on a crop of lo,- 
ooo,ocx> bales. That would be a valuable 
saving, of course, and would be a big help to 
a poor people. 

But let us see what can be done at the 
other end of the problem. Suppose we don't 
sell the raw cotton, but turn it into plain 
white or colored cloth. This cloth should 
bring an average of 20c. a pound. At this 
value the entire crop would be worth one 
billion dollars. Therefore, by the very best 
possible economies we could hope to devel- 



133 



op, we may become able to save $50,ocx),ooo 
out of the cost of production. 

By the manufacture of the crop into the 
plainest production in cloth we can increase 
its value from $300,000,000 to $1,000,000,- 
000, or make a profit of $700,000,000.00 ; 
being more than 200 per cent, advance on 
the value now obtained out of the cotton crop. 

Out of one billion dollars which we would 
get for the cotton crop, the farmer would get 
somethingmore for his cotton than $300,000,- 
000 which he got before. The proximity of 
the factory always gives a little advance to 
the local price. The farmers would also get 
about $300,000,000 more for the food stuffs 
consumed by the factory people. This would 
give to the farmer $600,000,000 where he 
now gets $300,000,000. It would thus im- 
prove the condition of his sons and daughters 
who stay on the farm. It would also improve 
the condition of the other son and daughter 
who preferred factory work to farm work. 

By virtue of this increased income for the 
perishable products of the farms, not other- 
wise of value, it would perpetuate his control 
of the production of cot^'on which India, 
Egypt and South America are now threat- 
ening. 

After turning over to the farmer $300,000,- 
000 for his cotton and then $300,000,000 



»W \J \J Kf ^ ,^ 

00"^ . **" . 



^ o 



134 



more for food stuflFs there would still be left 
say $icx),pcx),ocx) for the merchants, $ioo,- 
ooOjCXXD for the doctors and lawyers, $ioo,- 
ooo,<X)o for the stock holders and $i<x),ooo,- 
ooo for general expenditure. 

In the manufacture of iron the story is the 
same. Out of the ore, the coal, the limestone 
and the labor comes the product that can be 
sent abroad to fetch back the money from 
the strangers. 

In cotton oil we have again the same al- 
luring results. 

In lumber the story still again repeats 
itself. 

But have we got the people? 

England has a population of approximately 
forty million people. She operates forty-six 
million cotton spindles. This is more than 
one spindle for each inhabitant. We have 
in the South approximately twelve million 
white people. We operate now five million 
spindles. England has probably as many 
spindles on wool as on cotton. We have in 
the South very few spindles on wool. 

In North Carolina we spin about 3cx>,cxx) 
bales of cotton and employ about 30,000 peo- 
ple in doing it. This is one person for each 
ten bales of cotton. On this basis 1,000,000 
operatives could spin and weave the entire 






135 



crop into coarse goods — the goods we now" 
make in North Carolina. 

In the early days of the Republic your 
ancestors manufactured with eminent success. 
Nearly a century ago there was an iron works 
where the Henrietta cotton mill now is. 

There was a cotton factory where the new 
Rocky Mount mill now is. I have at home a 
copy of a contract in accordance with which 
the complete machinery for the equipment 
of a mill was built near Lincolnton in this 
State in 1813. Throughout the upper part 
of South Carolina, and in the middle part of 
North Carolina there are abundant evidences 
that these States enjoyed a system of well- 
developed and profitable manufactures. 

Throughout the Southern States as they 
then existed, there are abundant evidences 
that the South at one time enjoyed a system 
of well-developed and profitable manufac- 
tures. The Southern statesmen of that time 
were all advocates of manufactures from 
Washington down — ^and most of them were 
protectionists too. 

That early and profitable development was 
all lost because of slavery. As this institution 
grew, all the other developments made by 
your ancestors shrunk away and dried up. 
There were those who saw the impending 
danger and fought against it, as did Mr. Jas. 



•. / -.• : • ' - 



136 



Smyly and Wm. Gregg of South Carolina, 
and John M. Morehead in this state, but 
the opposition was to no purpose. Slavery 
destroyed the manufacturing interests of the 
South and then itself fell to pieces as is usual 
with destoying influences. In its fall it swept 
away the wealth of the South. It completely 
destroyed the labor system of the South. For 
nearly a generation the black and devastating 
ruin threatened the social system of the South, 
which meant civilization itself. Never did a 
coming generation owe to a going one the 
debt of gratitude that the youth of the South 
of this day owe to their parents who brought 
through this period the civilization of their 
ancestors and preserved it from serious de- 
generation. 

We have the raw materals and the labor* 
Our late efforts have brought more than sat- 
isfactory results in every case where manufac- 
turing has been undertaken. I am now 
brought in my discourse to a discussion of 
the means by which our manufacturing inter- 
ests may be further safely and profitably 
developed. I have already attempted to show 
that such further development would not 
only be profitable in itself, but that it would 
redeem our depressed agricultural interests 
and perpetuate for our country the control of 






137 



cotton production for the future as in the 
past. 

The means that appear to me essential 
are : 

I. Education. 

a. Transportation facilities. 

3. Markets. 

4. Banking facilities. 

I will discuss these briefly in the order 
named. 

EDUCATION. 

There is a certain degree of education that 
comes to all people by virtue of being brought 
up in a civilized community. With such a 
very limited general education, acquired 
chiefly by contact, our people are able to spin 
and weave cotton into the simplest and plain- 
est fabrics. These fabrics are used for the 
commonest purposes at home and to sell 
abroad for similar use in semi-civilized coun- 
tries or to semi-civilized people who cannot 
even do with reasonable economy the sim- 
plest operations of spinning and weaving. 

I have shown to what extent we may 
increase the value of raw cotton by means of 
the simplest forms of its manufacture into 
cloth. I wish to undertake to show now, 
how, with fuller knowledge and better skill 
we may still further increase the value. 



J ^ - 



138 



Bstimating the crop of North Carolina at 
500,000 bales, this as raw cotton at 6 cents- 
would yield $15,000,000.00; as plain white 
cloth at 18 cents would yield $45,000,000.00 ; 
as checks and plaids at 24 cents would yield 
$60,000,000.00. 

The people of the state are as a matter of 
fact now utilizing 300,000 bales and making 
a product which Mr. Wm. Entwistle, of 
Rockingham, says will average 20 cents a 
pound, which would yield $50,000,000.00 for 
three-fifths of the crop. 

But these values are by no means the 
limit of what may be brought to the raw cot- 
ton with increased knowledge and skill. 

This same cotton turned into a fancy ging- 
ham or good quality of outing cloth would 
bring 36 cents a pound and would yield 
$90,000,000.00. 

If made into a fine dress gingham like 
Toile de Nord, made by my friend Mr. A. H. 
I/O we at Fitchburg, Mass., it would bring 
60 cents a pound, which would yield $150,- 
000,000.00. 

Taking now some French mull or some 
mercerized cotton stuflFs we find these bring- 
ing in the market $1.20 a pound, which 
would yield $300,000,000.00. 

In this shape it may be seen that the cotton 
crop of North Carolina would bring as much 



139 



money as the entire crop of the South now 
brings. These cloths are not so very fine 
and it would require but a little step forward 
in education for our people to become quali- 
fied to make it 

But this is by no means the limit. Take 
some French nainsook, we find some of it 
selling in the stores at $6.00 a pound. If 
manufactured into this stuff the value of the 
North Carolina crop would go to the amaz- 
ing sum of $1,500,000,000.00. And yet even 
this is by no means the limit. I exhibit a 
piece of swiss embroidery, the value of 
which goes to $24.00 a pound, at which the 
North Carolina crop would yield $6,000,000,- 
000.00, a sum that is inconceivable, beside 
the paltry 15,000,000 dollars which is the 
value of our raw cotton. 

This exhibit and the resulting figures 
could even be carried farther, but what's the 
use ? It has long since become plain to me 
that North Carolina could well afford to issue 
a half million dollars in bonds to be expended 
in textile education with absolute certainty 
that inside of ten years it would enhance the 
value of North Carolina cotton twenty million 
dollars a vear over and above what it now 
brings. Look at the tonnage of France's ex- 
port. It is one of the richest countries in 
the world, and yet her export tonnage is very 



140 



small; Her principal exports are composed 
of a very small proportion of raw material 
and a very large proportion of knowledge 
and skill. The Frenchman has not the 
endurance or staying quality of the Anglo- 
Saxon, but if he was not quicker and better 
educated for work he would starve to death. 

TRANSPORTATION. 

It would be useless to make goods without 
the means for their economic distribution. 
The Scientific American has lately published 
some comparative statistics showing that by 
means of railroads the United States handles 
annually more than 900,000,000 tons of 
freight. Great Britain handles about half as 
much. Germany about one quarter. France 
about one eighth and Russia about one tenth. 
Our domestic market is the best market in the 
world. This condition is largely the result 
of our transportation facilities. We have 
more railroad mileage than that of all the rest ' 
of the world put together. We handle about 
as much freight as England, Germany, 
France and Russia do all together. 

How did we get this system of railroads ? 
I answer by means of subsidies. The Nat- 
ional Government itself has extended vital 
aid in the construction of our trans-conti- 
nental lines of railway. Amongst the States, 



141 



cities, towns, counties and even townships 
those would be rare indeed that have not 
contributed aid to one or more railroads 
either by voting bonds to be exchanged for 
stock or by guaranteeing railroad bonds. 
There have been land grants, grants to rail- 
roads for the use of whole streets and in every 
other way possible to imagine, subsidies have 
been given, and freely given to railroads. It 
has been argued in opposition in many in- 
stances that the stock for the proposed issue 
of bonds would be worthless. The good citi- 
zen has invariably answered — "well if we get 
the railroad I'm willing to lose the stock if 
necessary". I doubt if a state, city or county 
could be found that would be willing to take 
back its lost money — its subsidy money, and 
give up the railroads which this money 
helped to build. 

If a good line of railway was proposed to- 
day which could be brought to Tarborro for 
$25,000 or failing in this subsidy, pass six 
miles to the west of your city you would 
with absolute certainty raise the money. You 
know you would. 

Both the South and West are peculiarly 
enterprising in this matter of domestic trans- 
portation facilities. 

Both the South and West are urgently in 
need of foreign markets. Yet lavish as they 



142 



are in expenditures for domestic transporta- 
tion facilities, if the subject of a little aid is 
mentioned for a steamship line to facilitate 
the exportation of cloth made here in your 
Tarboro mills, or cotton made in Texas or 
flour from wheat made in Dakota, the North 
Carolinian, the Texan and the Dakotan im- 
mediately takes a fit. Republicans and Dem- 
ocrats alike forget the interests of the people, 
and consider it necessary to sacrifice all else 
to, or what they conceive to be party loyalty. 
Can it be party loyalty to wage a war of 
politics in the pursuit of office and regardless 
of the welfare of all the people? 

Ever since the Civil war, the South has 
heen in a defensive attitude. Her representa- 
tives have been apologists. More or less of 
this situation has been a result of the calamity 
which slavery, not the Civil war, brought. 
The first man ever to take an aggressive 
stand in Post Bellum times was Henry W. 
Grady, who pointed out in his Boston 
speech, upon the subject ofthe race problem, 
that while New England was demanding 
of the South a solution of this problem with 
an intolerance that forbade argument, and 
with an impatience that brooked no delay, 
yet the people of New England were taking 
no practical hand in the solution. As long 
as the race problem was the whole of our pol- 



143 



itics, this defensive attitude of our represen- 
tatives was unavoidable. But now that it is 
practically past it behooves us to give at once 
earnest attention to the requirements of our 
material interests. These interests are 
largely in our growing manufactures. We 
make here in the South cotton, cotton cloth, 
cotton oil, cotton seed meal, pig iron, lumber, 
flour and numerous other products that must 
find export markets. On these questions our 
interests are common with those of the people 
of the rest of the United States. 

We have now reached the condition where 
we make more manufactured products than 
our home markets will take. England and 
Oermany are willing enough to send here 
their subsidized ships to take away our raw 
cotton but not our cotton cloth; to bring us 
pig iron but not to take pig iron away. We 
must find the ultimate markets for these 
products ourselves, and we must establish 
ship lines to reach them. I am in favor of 
whatever expenditure is necessary to create 
and maintain as good transportation facilities 
on the seas as we have on the land. We 
have the best in the world on land, and the 
test home markets as a consequence. What 
we have on the seas is hardly worth men- 
tioning, and our foreign trade is proportion- 
ately small. Of 64,000,000 dollars worth 



144 

of cotton goods going into China a few 
years ago the United States put there 6,000,- 
000 dollars worth only. 

I favor an Isthmian ship canal to be built 
and owned by the general government. 

I favor a cable across the Pacific to be laid 
by the general government and to be owned 
and operated by the government. 

These are facilities that are essential to our 
manufacturing growth. Manufactures are 
absolutely necessary for the revival of profit- 
able Agriculture and the reconstruction of 
the fallen fortunes of our fathers. We can no 
more handle export trade without transpor- 
tation facilities than we can prosper at home 
without them, and everybody knows that a 
town without a railroad is dead till it gets 
one. 

MARKETS. 

For raw cotton at 6 cents a pound England 
and Germany are as good markets as we could 
desire. When we needed pig iron and cotton 
ties they were delighted to send these here 
in exchange for our cotton, using their ships 
for all the transportation. 

But if we prosper we must turn our cotton 
into cloth and get 20 cents a pound instead of 
6 cents and we have commenced to do it. We 
must stop buying pig iron and make all we 



145 



need with a surplus for export, and we are 
already doing this. We must seek, develop 
and protect markets for cotton oil, wheat and 
flour, lumber and its products. What I say 
about all these, applies as much to New 
England and the North West as to the South. 

Indeed in all that I say at all times I seek 
for the establishment of no policy for sec- 
tional advantage. I seek rather to find out 
and exhibit those policies which are for the 
best interests alike of all the people of this 
country and of the countries we would deal 
with. 

If we co-operate in the development of 
manufactures and the fostering surrounding 
conditions, there is no such thing as compe- 
tition between New England and the South. 

I believe that the purchase of Louisiana 
by JeflFerson was a wise and beneficent action. 
The forebodings of evil which were made as 
arguments against the action have not come 
to pass. 

I believe that the annexation of Texas 
was equally wise and beneficent, and the 
forebodings of evil in that case have failed 
also. 

The acquisitions of Florida from Spain, of 
the South Pacific territory from Mexico, of 
Alaska from Russia, have all been advan- 
tageous to us and to the populations that 



146 



qame under our control with or without their 
own consent, and the greater advantage has 
in each case been to the people of the 
acquired territory. We have in each case 
given them law and order and guaranteed 
for them the security of life, liberty and prop- 
erty. We have furnished them systems of 
education, and in infinite ways hastened 
them forward in the path of civilization to 
their advantage. 

The policy of our country, since its found- 
ation has been, above that of all other coun- 
tries, one of expansion. It seems to be settled 
that we already have Porto Rico and Hawaii. 
I believe that Cuba will come to us in the 
natural course of events by annexation. 

I favor keeping the Philippines. Consid- 
ering modern facilities, the Philippines are 
more accessible to us now than California 
was when we acquired it. They are as 
accessible now as Alaska is now, and yet who 
would propose to give up Alaska. Their 
value in trade far surpasses that of Alaska, 
and our opportunity for the extension of 
Christian civilization is greater there than in 
Alaska. 

The possession of the Philippines is impor- 
tant to us for another reason. There are said 
to be 800,000,000 people in the country 
known as the Orient. Christian civilization 



147 



is beginning to reach these people. Our 
churches have for years kept missionaries 
amongst them. The works of these mission- 
aries are now beginning to bring some of the 
results that their supporters here at home 
have hoped for. Can we now refuse to go 
ahead with the civilizing work that has been 
begun. We will of necessity have increasing 
duties and interests in China. For the advan- 
tage of our people at home in their trade 
with China, and for the advancement of the 
work of our Christian missionaries we should 
insist upon the preservation of our treaty 
rights with China, and resist the partition of 
that Empire. Our duty and our interests lie 
together in these matters. I believe that 
Democrats and Republicans alike ought to 
demand of, and support our government in a 
vigorous prosecution of all measures looking 
to the protection and extension of our inter- 
ests in what was once the old far East or 
what is now our new far West. 

BANKING. 

Once upon a time Mr. Henry Watterson 
was called upon to speak to a Scotch-Irish 
Society. He said in e£fect: 

"We have heard from the North-East for 
more than a century, a clamorous claim 
about how it was the Puritan who founded 



148 



this Government and had guided its affairs 
and kept it straight ever since. We have 
heard an equally noisy clamor from the 
South-East about how the Cavalier founded 
it and how he has been keeping it going 
since. Now as a matter of truthful history 
and fact," said Mr. Watterson, "and just 
among us Scotch-Irish here, I want to tell 
you all that neither one of these clamorous 
sets of people had a thing to do with it. We 
Scotch-Irish did the whole thing from begin- 
ning to end, and if we had not been mighty 
shifty fellows the Puritans and Cavaliers 
would have separately or together ruined 
the whole business a dozen times." 

I think very much the same way about the 
partisans of silver and gold. Let the gold 
men or the silver men have their way and the 
country gets no relief that makes farming, 
manufacturing or merchandizing easier. The 
reason for this is that our difficulty in bank- 
ing is not one of a standard of values. The 
standard of values is very much like the 
standard of measures, which is totally one of 
convenience. We may legally have a yard 
stick, or a metre or make both legal. Indeed, 
I think both are legal in this country, but by 
common consent the people stick to the old 
yardstick. I prefer the metre, but I get 
along very well with the yard stick. 



149 



The fault of our currency system is in its 
inflexible character. We have ample money 
and assets to do business on either a gold or 
silver basis. But the connection between the 
two is brittle and in elastic. For deposit and 
discount our National Banking system is as 
good as could be desired. The issue feature 
is practically dead. 

This was not the case when government 
bonds were cheap and the interest high. It 
is the case with high priced bonds and cheap 
interest. 

The remedy lies in totally abolishing bonds 
as a basis of bank note issue and substituting, 
the assets of the bank. This would be the 
old State banking plan made National. It is 
the plan followed in Canada, and Canada is 
conspicuously free from the sharp turns in 
the money market that is constantly pinching 
New York and the rest of the country, and 
is also conspicuously prosperous to resources. 

It is a plan followed in Scotland, and much 
of the prosperity of that country is attribut- 
able to the fact that the Scotch banks re-dis- 
count their own paper by issuing bank notes 
on their assets, instead of taking these best 
assets down to London for re-discount at the 
bank of England. Even the bank of Eng- 
land when pressed goes to the bank of France, 



150 



which is one having the right of unlimited 
note issue on its assets. 

If we have assets that are good enough to 
secure re-discounts in the money centres, 
these same assets ought to be good enough to 
secure bank notes at home. 

Very little change in our National banking 
system would be necessary, to my mind, to 
overcome all our currency diflSculties. These 
overcome, our manufacturing interests would 
stand upon an infinitely firmer basis. 

The changes should be as follows: 

First. Repeal the requirement of bonds for 
note issue and substitute the assets of the 
bank. 

Second. In return for the one per cent, tax, 
let the Government guarantee all notes. 

Third. Increase the minimum capital to 
$100,000.00. 

I am aware that there are those who think 
that this would lead to "wild cat" money. It 
has not done so in Canada nor France or 
Scotland. 

The defects of the old State systems would 
be easily and totally avoided. Indeed they 
would be avoided with the present national 
banking system modified as indicated. 

The Government guarantee would make 
the notes as good as the government itself, 
while the tax of i per cent, on money issued 



161 



would yield a sum ten to twenty times in 
excess of any possible payments that would 
have to be made on account of redemption 
of notes of broken banks. 

In Canada the government does not guar- 
antee, but collects from the banks a guarantee 
fund to secure redemption of notes. There is 
no objection to this plan. Our friends at the 
North I think totally mistake the require- 
ments of the South and West in this matter 
of banking. 

It is not little banks we need, but the 
right to use our home assets for bankable 
purposes at home. 

In a bill now under serious consideration 
in Congress it is proposed to reduce the limit 
of capital for a national bank to twenty or 
twenty-five thousand dollars under certain 
conditions. This is to my mind, useless and 
necessarily means a high rate of interest to the 
people served by these little banks. The 
South and West is now full of so-called State 
banks having capital in excess of the national 
requirement. For discount and deposit they 
can dp business quite as well as though they 
were operating under a national charter, 
while for NOTE ISSUE they couldn't afEord it 
under a national charter. I should increase 
rather than reduce the minimum capital. 

The right of note issue up to lOO per